Mortgage rates continue to trend upward. Since our update last week, rates have added another 1/8 to 1/4 of a point in cost. The upward trend comes just weeks after the volatile stock market helped rates dip to their lowest level in 18 months.
The upward movement might be frustrating for buyers and / or existing owners who wanted to conclude their mortgage financing activity during the low window. Is it worth waiting and hoping for a another drop? Consider: rates are still very close to record lows on the historical spectrum. You will still be paying much less for a lower rate than you would have five to ten years ago.
If this doesn’t sooth your mind, we can offer a bit of advice. First: make sure that you are pre qualified so that you can act quickly when the time is right. Anytime doubt or volatility enters the market, mortgage rates have the potential to dive. Given the geopolitical situation (rocky economies, ugly geopolitical battles and standoffs), this could happen at any time.
Second: there is no second piece of advice (see what we did there?). Every situation really is different. Sometimes it isn’t just a lower rate that helps people save on their refinance, but the ability to eliminate costly mortgage insurance. Buyers might be able to use low-rate middle-income loan programs to improve their affordability (think: USDA Loan).
Give us a call at 805.543.LOAN with any of your home loan questions. We are happy to help you work through whatever issues you might encounter.