According to Initial research of the mortgage market from Freddie Mac. The delay is due to the conflict between the recovering economy and the rise in delta COVID-19 cases, according to Sam Hater, chief economist at the mortgage giant.
“With the tug-of-war between the economic recovery and the rise in COVID-19 cases, mortgage rates have been moving sideways in the past few weeks,” Hather said. “Overall, rates are still low, with a window of opportunity for those who haven’t refinanced less than 3%. From a buyer’s perspective, demand for bids is increasing, but very low consumer inventory levels remain the main obstacle to home sales growth. purchase.”
Increase in 30-year mortgages to 2.87% for the week ended Aug 26, 2021, up from 2.86% a week earlier. This is still lower than last year’s 2.91%. If you want to know what mortgage interest rate you can get when refinancing your mortgage, visit Credible for a personalized estimate…
The 15-year fixed rate mortgage also rose slightly from 2.16% last week to 2.17%. This is lower than last year’s 2.46%. The five-year adjustable rate Treasury mortgage fell from 2.43% to 2.42%. This is also below last year’s 2.91%.
Homeowners can take advantage of these low rates to lower their monthly payments through refinancing. Visit Credible to see multiple options at once and choose the mortgage lender with the best rates and terms for you.
When will interest rates rise?
Interest rates remain unchanged for now, but experts expect them to start rising soon, perhaps by the end of 2021, and the Federal Reserve may raise the federal funds rate as early as 2022.
“The number of homes for sale remains low despite recent improvements in inventory, and home prices continue to rise, albeit at a slow pace,” said Daniel Hale, chief economist at Realtor.com. “The rates will start to rise if we continue to make progress in the fight against the pandemic, which will mean the economy will stay on track and, although less likely, rates could come down if COVID cases continue to rise.
“Data on both existing home sales and new home sales in July showed that the housing market performed largely as expected, with a slight upturn during the month, but markedly down from its peak last winter.”
If you would like to get your mortgage refinanced before the interest rate hike later this year, visit Credible to pre-qualify in minutes without affecting your credit score.
Benefits of Refinancing Mortgages
Refinancing a home loan against a backdrop of historically low interest rates can have a number of benefits for homeowners, including:
Lower interest rate: Current mortgage rates can benefit homeowners and help them save significant monthly payments over the life of the loan. Even borrowers who bought homes early in the pandemic can benefit from refinancing with a lower interest rate on the loan amount. Check out Credible to view multiple mortgage lenders at once and see which one has the best annual interest rate for you.
Removing Private Mortgage Insurance (PMI)A: Mortgage insurance can add up to hundreds of dollars to your monthly mortgage payment. And for loans such as those backed by the Federal Housing Administration (FHA), the only way to reverse the PMI is to refinance the mortgage. If you are considering refinancing to exclude PMI from your FHA loan, contact Credible to speak with a home loan specialist and get answers to all your questions.
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