Don’t Wait Too Long to Lock in an Interest Rate
While it is definitely important to watch the market closely, you don’t want to be stuck with a higher interest rate on your home loan just because you waited too long. If you have been looking to buy or refinance your home, now is definitely a good time to do so as mortgage rates are approaching all time lows.
Last week the national average for the 30 year fixed dropped to 4.89%, while the average for the 15 year fixed rate fell to about 4.32%. This makes for a total of three weeks since the 30 year fixed-rate has dipped below 5% and the lowest rate ever recorded for the 15 year rate. Additionally, FHA, Jumbo, and reverse mortgage rates have dipped recently, though not to the same degree as the 30 and 15 year fixed.
With the upcoming expiration of the first-time home buyer tax credit program and the predicted increase in rates and inflation as the economy recovers, don’t expect rates to stay below 5.0% for much longer. We are very likely to see some volatility in rates during the rest of October as investors wait to see what direction the 10 year treasury yield will. The Fed is planning to stop buying back US Treasuries at the end of this month so there will likely be an increase in treasury yields which would subsequently increase mortgage rates.
So if you have been thinking about either refinancing or buying a new home, you might want to consider doing in sooner rather than later
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Yes it true that with the upcoming expiration of the first-time home buyer tax credit program and the predicted increase in rates and inflation as the economy recovers, we can not expect rates to stay below 5.0% for much longer. Those who are planning to buy or refinance home these are the best time as mortgage leads are at the all time low. Waiting too long for getting interest rest much lower than this is a risk that you should not take. Yes mortgage rates will be surely increased if federal Government plans to stop buying back US Treasuries at the end of this month.
Are you a professional journalist? You write very well.
Interesting and informative. But will you write about this one more?
I really like your blog and i respect your work. I’ll be a frequent visitor.
Thank you! You often write very interesting articles. You improved my mood.
Interest rates are really defining people’s lives in an odd way these days, and people, especially homeowners, need to get educated on how much money they are paying in interest.
I’m like your articles, it’s good as property investment guide.