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What is the Lowest Refinance Rate in History?

In 2021, all-time low rates were achieved for all major mortgage types tracked by the federal government.

What is the lowest refinance rate in history? 2.10 percent is the short answer.

The truth, though, is that you have to look at averages when researching this topic. The actual lowest-ever rate on an individual mortgage contract is not public information, but average rates are.

Freddie Mac has tracked three loan types and calculated average rates for each category every week for more than 50 years. This project is called the Primary Mortgage Market Survey (PMMS).

A quick look at the numbers within the PMMS tells us both the lowest rates ever (all recent) and where they are right now (not too much higher). Making the right financial decisions requires a longer view, since rates have started rising but are still extremely low.

Lowest Refinance Rate in History (Freddie Mac data)

Here are the details for each of the three mortgage categories, in ascending order by rate:

15-year fixed-rate mortgage (FRM)2.10 percent (July 29, 2021; August 5, 2021)

Currently, the 15-year FRM is averaging 2.30 percent, just 0.20 percent higher than the best rate in more than 50 years.

5/1 adjustable-rate mortgage (ARM)2.40 percent (August 5, 2021)

Today, the average rate for the 5/1-year ARM is 2.55 percent, only .15 percent higher than the all-time record rate.

30-year fixed-rate mortgage (FRM)2.65 percent (January 7, 2021)

As of now, the 30-year FRM is at 3.05 percent. The average refinance into this mortgage type hits a rate just 0.40 percent higher than the 50-year low.

Can YOU Benefit From a Refinance?

Many people already refinanced in 2020 ($2.8 trillion in loans) or 2021 (65% of all mortgage applications, per the Mortgage Bankers Association). However, millions more families could save: those who could score an interest rate at least 0.75 percent lower comprise a population of 11.8 million homeowners.

Are you one of those 12 million who could save thousands? Those in this group who do go through with a refinance will garner monthly average savings of $284. Total monthly savings potential for the whole group is $3.4 billion.

Get Your Best Rate

While knowing the lowest refinance rate in history may seem only loosely relevant to individual choice, it highlights the climate. While moving quickly to refinance may be sound, you need the right professional assistance.

“This is a great company to refinance with,” wrote Nathan Lee in his Google Review of BAM. “They answered every question quickly and got me to closing within two weeks of initiating the process.” Meet our team!

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