According to Fannie Mae, the average mortgage interest rate for 2020 will be 3.2%, a small decrease from the average rate of 3.9% in 2019. In 2021 they expect that average mortgage interest rate to drop even lower to 2.9%. This same forecast predicts a refinance volume of $1.78 trillion this year, which would be the highest volume since 2003. As of the end of May, over 14 million mortgage holders could lower their rate by at least 0.75% by refinancing, saving consumers a combined $3.95 billion per month. This low interest rate environment could push refinance volume even higher as the year ends.
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