Freddie Mac data shows mortgage interest rates are going down a bit, but here’s why, according to one expert, they could rise soon.

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Interest rates have decreased slightly, but, according to experts, they may rise in the near future. (iStock)

Interest rates on 30-year mortgages fell, but by only one basis point, from 2.87% to 2.86% in the week ending Aug.19, according to Freddie Mac’s. Initial research of the mortgage market

“Mortgage rates have remained relatively unchanged this week,” said Sam Hather, chief economist at Freddie Mac. “Housing is in the same phase of the economic cycle as many other consumer goods. Despite strong latent demand, low supply has driven prices up as the scarcity limits the volume of sales that would otherwise have occurred. ”

With mortgage rates below 3%, many borrowers can get a lower interest rate by refinancing their home loan. Refinancing has several benefits, such as being able to use your home’s equity capital, canceling private mortgage insurance (PMI), or lowering your monthly mortgage payments.

If you are thinking about refinancing, consider using Credible… You can use the free online tool Credible to easily compare multiple lenders and view preliminary rates in just three minutes.

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Mortgage rates show mixed results

The fall in 30-year mortgages also fell from 2.99% this time last year. Conversely, the 15-year fixed rate increased slightly from 2.15% last week to 2.16%. 15-year mortgages are also down from last year, when they averaged 2.54%.

An adjustable interest rate (ARM) hybrid mortgage indexed by the Treasury for five years fell to 2.43% from 2.44% last week and 2.91% last year.

Regardless of whether the current mortgage rates are increasing for different loan terms, they are still lower even when compared to the low rates of last year. To ensure that you get the best rate for your loan amount, you should shop with several mortgage lenders. Visit Credible to compare multiple mortgage lenders at once and find the best mortgage lender for you.

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Soon rates may rise, and therefore

Despite today’s lows, experts predict that mortgage rates may start to rise before the end of the year. V minutes from Federal Reserve The July meeting of the Federal Open Market Committee showed that the Fed is considering cutting its assets this year. As one expert explains, this is the first step in a series that will lead to higher Fed interest rates.

“Freddie Mac’s fixed rate on the 30-year loan fell one basis point to 2.86%,” said George Ratiu, senior economist at Realtor.com. “The 10-year Treasury bonds were unchanged at the start of the week on weaker-than-expected retail sales, and mortgage rates responded to subsequent investor fears about declining consumer sentiment and rising delta COVID cases.

“In addition, yesterday’s Federal Reserve minutes showed the central bank is considering cutting asset purchases by the end of 2021 due to concerns about inflation in light of the economic recovery,” Ratiu said. “However, a cut in purchases of Treasuries will be a likely first step before a cut in mortgage-backed securities. This means that we can expect rates to rise again in mid-March above 3.0% towards the end of the year and in 2022. … “

If you want to refinance your interest rates before mortgage rates start to rise, visit Credible to pre-qualify in minutes without affecting your credit score… Credible can help you compare mortgage lenders and find the best refinancing rates available so you can lower your monthly payments and meet your financial goals.

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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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