Mortgage Rates Are at Record Lows. Should You Refinance?


When people look back on the tumultuous 2020 economic landscape, they might pause a moment to check out home mortgage rates. Over the last three months, these rates have managed to achieve five (!) all-time lows. Currently, Freddie Mac, which buys mortgages from banks, reports an average 3.03% rate on 30-year fixed-rate mortgages, and there is a chance that we could see rates below 3% between now and the end of August. 

You can see the remarkable downward trend in mortgages from late 2018 through the end of June. The light-blue-shaded part of the chart shows projected rates going forward. Compare these rates to 18% fixed-rates back in the early 1980s, or 5% as recently as 18 months ago. You can take the projections with a grain of salt (nobody knows what will happen next week or next month, much less through the end of the year), but it’s clear that today’s 3% rate is pretty extraordinary.

Does that mean most people should be refinancing their home loans? That depends on several factors, including their current mortgage rate and how long they expect to own their house. But it may be worth exploring, sooner rather than later. If you are interested in exploring a refinance on an existing home or a second home, or a new home purchase, feel free to reach out to our trusted mortgage advisor alliance here: 

Michael Drake, Principal, PMG Home Loans
Direct: 916-765-4826
Loan Processing: 916-749-3556
eFax: 866-710-4543

As always, I’m also here to help you make any necessary changes to your financial plan in light of changes to the market or your goals. If you have any questions about your personal financial situation, please don’t hesitate to reach out.

Stay Diversified, Stay YOUR Course!

Empyrion Wealth Management (“Empyrion”) is an investment advisor registered with the U.S. Securities and Exchange Commission under the Investment Advisers Act of 1940. Information pertaining to Empyrion’s advisory operations, services and fees is set forth in Empyrion’s current Form ADV Part 2A brochure, copies of which are available upon request at no cost or at The views expressed by the author are the author’s alone and do not necessarily represent the views of Empyrion. The information contained in any third-party resource cited herein is not owned or controlled by Empyrion, and Empyrion does not guarantee the accuracy or reliability of any information that may be found in such resources. Links to any third-party resource are provided as a courtesy for reference only and are not intended to be, and do not act as, an endorsement by Empyrion of the third party or any of its content. The standard information provided in this blog is for general purposes only and should not be construed as, or used as a substitute for, financial, investment or other professional advice. If you have questions regarding your financial situation, you should consult your financial planner or investment advisor.