Freddie Mac: Low Mortgage Rates Boost Refinance Share To Above 60%

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Whatever happened to the notion of moving firmly into a purchase market?

Ever since the Brexit vote, mortgage rates have been gently seesawing near their historic lows – which has been a good thing for the refinance market.

After increasing slightly the previous week, rates dipped back down again during the week ended Sept. 8.

According to Freddie Mac’s Primary Mortgage Market Survey, the average rate for a 30-year, fixed-rate mortgage (FRM) was 3.44%, down from 3.46% the previous week. A year ago at this time, the 30-year FRM averaged 3.90%.

The average rate for a 15-year FRM was 2.76%, down from 2.77%. A year ago at this time, the 15-year FRM averaged 3.10%.

The average rate for a five-year, Treasury-indexed, hybrid adjustable-rate mortgage (ARM) was 2.81%, down from 2.83%. A year ago, the five-year ARM averaged 2.91%.

“As mortgage rates continue to range between 3.41 and 3.48 percent, many are taking advantage of the historically low rates by refinancing,” said Sean Becketti, chief economist for Freddie Mac. “Since the Brexit vote, the refinance share of mortgage activity has remained above 60 percent.”

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