Average mortgage rates for a 30-year fixed rate mortgage dropped to 2.97 percent for the week ending April 22, according to Freddie Mac’s Primary Mortgage Market Survey.

Mortgage interest rates once again dropped below 3 percent for the first time since Feb. 25, allowing for a potential surge in mortgage originations as more homeowners become eligible to refinance. 

Average mortgage interest rates for a 30-year fixed rate mortgage dropped to 2.97 percent for the week ending April 22, 2021, according to Freddie Mac’s Primary Mortgage Market Survey. This is down significantly from last week’s 3.04 percent, and from last year’s 3.33 percent. The last time the 30-year fixed rate fell below 3 percent was for the week ending Feb. 25, when it hit 2.97 percent.

mortgage interest rates

This marks the third straight week of interest rate declines, a trend that’s driving housing activity, which had begun to slow, back up. Mortgage applications increased 8.6 percent on a seasonally adjusted basis for the week ending April 16, 2021, according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey. The Market Composite Index, a measure of mortgage loan application volume, increased 9 percent on an unadjusted basis from the week before.

“The drop in mortgage rates is good news for homeowners who are still looking to take advantage of the very low rate environment,” Freddie Mac Chief Economist Sam Khater said. “Freddie Mac research suggests that lower income and minority homeowners have been less likely to engage in the refinance market. Low and declining mortgage rates provide these homeowners the opportunity to reduce their monthly payment and improve their financial position.”

The 15-year fixed-rate mortgage averaged 2.29 percent, down from last week when it averaged 2.35 percent. A year ago at this time, the 15-year FRM was much higher at 2.86 percent.

However, the five-year Treasury-indexed hybrid adjustable-rate mortgage averaged 2.83 percent, up from last week when it averaged 2.8 percent. A year ago at this time, the 5-year ARM averaged 3.28 percent.

Email Kelsey Ramírez

mortgages
Show Comments Hide Comments

Comments

Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Success!
Thank you for subscribing to Morning Headlines.
Back to top
Prepare for this fall with top agents & brokers at Connect Now on September 21.GET YOUR TICKET×
Limited time: Get 30 days of Inman Select for $5.SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription