Mortgage Rates Start To Rise Again: Why Homeowners Should Take Advantage Of Low Refinancing Rates Now

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As mortgage rates rose for 30 years, mortgage rates for 15 years hit an all-time low. Experts explain why now is a good time to refinance. (iStock)

This week, mortgage interest rates began to rise as the US economy improved, rising to 2.8% from 2.78% a week earlier for a 30-year fixed-rate mortgage. according to the latest mortgage market research from Freddie Mac

IN the economy also grew by 6.5% The Bureau of Economic Analysis said it will work to recover from the devastating coronavirus pandemic in the second quarter of 2021.

“As the economy works to get back to where it was before the pandemic and the fight against COVID-19 options unfolds, owners and buyers continue to benefit from some of the lowest mortgage rates in history. “- said Freddie Mac’s chief economist Sam Hather said. “Largely due to current conditions, the 30-year fixed rate remains below 3% for the fifth consecutive week, while the 15-year fixed rate is hitting another all-time low.”

Homeowners may want to consider refinancing their mortgage to take advantage of these record low rates before they go even higher. This can help you lower your monthly payment, pay off your existing debt, and shorten your loan term. To lock in the loan rate now, before interest rates start to rise, visit Credible and pre-qualify in minutes without affecting your credit score

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While 30-year mortgage rates are on the rise, the average interest rate on 15-year fixed-rate mortgages has reached its lowest level of 2.1%. This is a drop from 2.12% last week and 2.51% over last year.

The Treasury-indexed five-year Adjustable Interest Rate Hybrid (ARM) mortgage also fell to an average of 2.45% this week from last week, when it averaged 2.49%. A year ago at this time, the five-year ARM averaged 2.94%.

Consider using an online mortgage calculator to determine possible monthly payments.… Through Credible, you can enter your numbers to see estimated mortgage rates and monthly payments.

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Following the July meeting this week, the Federal Reserve announced that it will keep the federal funds rate at 0%… And while this decision will affect mortgage rates as they tend to match the federal funds rate, many economists predict that mortgage rates will continue to rise in the second half of 2021.

“We expect mortgage rates to hover near historic lows over the summer before starting to rise this fall,” Daniel Hale, chief economist at realtor.com, said in a statement. “Those who have not yet taken advantage of the low rates to buy a home or refinance still have the opportunity to do so this summer.”

If you still have to refinance and want to save on your monthly payment, consider locking your mortgage rate to keep your interest rate low now before current mortgage rates start to rise. Visit Credible to compare rate quotes from multiple lenders at once and choose the most suitable conditions for you.

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

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