Homeowners Have Another Chance To Refinance As Mortgage Rates Fall Again

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The average interest rate on a 30-year fixed-rate mortgage fell to 2.88%, according to data Freddie Mac, the lowest level since mid-February and the third fall in a row in a week. The 15-year fixed rate mortgage fell to 2.22%.
The decline may pull some tired shoppers who refusal to purchase, back to the market with low rates.

“Since a peak of 3.18% in April, mortgage rates have dropped thirty basis points,” said Sam Hather, chief economist at Freddie Mac. “While this decline is small, it brings moderate relief to borrowers who buy in a market with high home valuations and scarce inventories.”

These favorable rates will help offset rising house prices, said George Ratiu, senior economist at Realtor.com.

“For buyers looking for predictable monthly payments, keeping rates low will allow them to keep looking for the home they want with the confidence that their home value will stay stable for years with a low fixed rate mortgage,” he said. …

Should I Refinance My Mortgage?

According to Realtor.com, the number of homes on the market has increased by 5% in the past few weeks as more sellers have taken advantage of record high prices.

“The influx of new offerings is helping to contain record price increases by giving buyers more options. Affordability will remain an issue for many first-time home buyers, however, as the monthly payment for a typical home this week is still $ 116 higher than it was a year ago. “

This could be a chance for people who didn’t refinance in the last year.

In June, the amount of refinancing decreased from the previous year, despite the fact that the rates were as low as the rates in March. Refinancing where a homeowner improved his rate or term was down 30% in June from March and 60% from January, according to Black Knight, a mortgage data company. But cash-to-cash refinancing remains significant, accounting for 42% of all refinances.

“Now is a good time to get back to refinancing your mortgage,” said Melissa Cohn, executive mortgage banker at William Raveis Mortgage.

She said the question is not why so many people have “missed”, but “Why can’t millions of people qualify for these bets?”

Many home buyers leave the market

For most current homeowners, it might be best to sit down and do the math: Consider how much refinancing will cost you and how long you will stay in your home, Cohn said.

It may also be prudent to take some steps related to the Home Equity Line of Credit, or HELOC, with low rates.

“Now is a great time to combine the first mortgage and HELOC,” she said. “HELOC rates will rise first when the Fed raises rates,” she said.

Cohn also said that the pandemic situation, while improving, is still causing a wave in the market. Banks are still not fully back to their pre-pandemic principles, she said, and as more employers demand that people return to the office, this is raising doubts among both buyers and sellers.



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