Delta COVID-19 Option Could Affect Rates And Mortgages, Economist Predicts

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The 30-year mortgage rate fell again, declining for the fourth straight week. This is why and for how long experts expect rates to remain low. (iStock)

Some economists point out that as mortgage interest rates decline Delta variant of coronavirus as a possible reason for the significant drop. The strain of the disease that led to the devastating global pandemic is growing and spreading among the unvaccinated population of the United States.

“Concerns about the Delta option and the overall trajectory of the pandemic are undoubtedly affecting economic growth,” Sam Hather, chief economist at Freddie Mac, said in a statement.… “As the economy continues to recover, Treasury yields have declined and mortgage rates have followed suit. Unfortunately, many homebuyers are unable to take advantage of the low rates due to low stocks and high prices.

“However, these declining rates provide homeowners with another opportunity to save money on monthly mortgage payments through refinancing,” he said.

Rates fell again last week, reaching 2.78% for a 30-year mortgage for the week ending July 22, 2021. According to Freddie Mac’s, this is 10 basis points lower than a week earlier. Initial research of the mortgage market… Likewise, the average 15-year fixed rate mortgage rate also fell, reaching 2.12%, up from 2.22% a week earlier.

As mortgage rates continue to decline, homeowners can take advantage of mortgage refinancing and lower their interest rates before they start to rise again. Visit Credible to get pre-approved in minutes and find your individual interest rate.

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How long will mortgage rates stay low?

Interest rates were steadily sinks lowerdeclining for the last four weeks in a row. Economists say volatility is not over yet.

“Freddie Mac’s 30-year fixed rate declines for the fourth straight week with a notable 10 basis points drop to 2.78%,” said George Ratiu, senior economist at realtor.com. said in the statement. “Investors have reacted to the moderate chaos caused by [July 19] stock markets plunge amid fears of renewed deltoid COVID cases stalling economic recovery and the Fed’s sluggish approach to inflation.

“Financial markets have experienced sharp fluctuations this week, with a sharp fall on Monday. [July 19] followed by a rally in the following days, which shows that we are in a period of transition and investors are looking for an elusive sense of confidence, ”said Ratiu. Fed and less COVID threat to business. “

It is unclear exactly when interest rates will rise, but experts are beginning to predict that this will happen sooner rather than later. Fannie Mae’s Latest Forecast Reveals 30-Year Fixed Rate mortgage rates rose to 3.1% by the end of the year. Some members of the Federal Reserve are forecasting a rise in interest rates. can be guaranteed by next year

If you are interested in refinancing your mortgage prior to raising your current mortgage rates, visit Credible to get pre-approved in minutes without affecting your credit rating, and see your individual rate. Homeowners can also take advantage of today’s mortgage rates and surging home prices to siphon money out of their home’s home equity and use it to renovate their home, pay off high interest debt, property taxes, and more.

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Expect Increase in Mortgage Refinancing, Experts Say

Experts now expect the mortgage refinancing rate to rise in the coming weeks as borrowers see mortgage interest rates remain low and other refinancing perks come into play, such as the recently announced removal unfavorable market refinancing fee

“Closure costs and Fannie / Freddie refinancing fees in unfavorable markets made refinancing less attractive to homeowners,” Ratiu said. “However, the recent announcement that fee will be liquidated on August 1st, may help with transactions over the next few weeks. “

To see how eliminating refinancing fees and lower interest rates can benefit you by lowering your payments or reducing the amount you pay over the life of the loan, contact Credible to speak with a home loan specialist and get all your questions answered

Have a financial question but don’t know who to contact? Write to a safe money expert at moneyexpert@credible.com and your question can be answered by Credible in our Money Expert column.

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