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Mortgage Rates on Trend To Remain At Record Lows
Mortgage rates have been below 3% for the past twenty days. Predictions speculate that the rates will remain in a stable low for the rest of the month, then slowly begin to climb again. This is an ideal time to refinance your home. It is also a good time to sell, as real estate prices are soaring and homes are closing fast. However, buyers will have a difficult time finding an affordable home right now, and they may not be able to get these super low interest rates as their actual mortgage terms. If this housing bubble does collapse after the predicted 2022 rise of interest rates, current buyers could wind up with upside-down mortgages.
30 Year Fixed Mortgage Rate
|Today’s Mortgage Rate||2.82%|
|Change From Yesterday||+0.01|
|Change From One Week Ago||-0.07|
|Change From One Year Ago||-0.23|
15 Year Fixed Mortgage Rate
|Today’s Mortgage Rate||2.17%|
|Change From Yesterday||-0.06|
|Change From One Week Ago||-0.10|
|Change From One Year Ago||-0.49|
Today’s Financial Headlines
While many people are excited about the soaring prices and bidding wars that characterize the current real estate market, others worry about the crash that may follow. However, most indicators show that the market should stay stable for at least another year. The two predictors of an upcoming bubble correction will be higher interest rates and an increase in new home construction. These trends are predicted to stay stable throughout 2022, and into early 2023.
Minorities were more likely to experience job loss, evictions, and credit damage during the pandemic. The current mortgage lending market is known as a “tight market”, meaning that lenders are being very stringent about buyer qualifications for financing. This is making refinancing difficult for minorities homeowners at a time when they most need the help. Blatant racism still exists in the mortgage industry as well, as evidenced by this black homeowner’s recent experience with refinancing.
Fannie Mae and Freddie Mac imposed a fee on refinancing loans during the pandemic. This fee has just been dropped, making it less expensive for borrowers to take advantage of he current record low interest rates. The fees were instituted to cover the expenses of a large number of homes that went into mortgage forbearance programs during the pandemic. Forbearance rates at the two lenders have fallen by 50% since last year, allowing the fee to be eliminated.
Your Mortgage Rate May Be Higher Than The Prime Rate
To qualify for a mortgage or refinance rate that is close to the daily average, you must have an excellent financial profile. If your credit, employment history, or the amount you have in savings aren’t ideal, then your rate will be higher. Each individual lender has a slightly different rate, based on a variety of factors. Search for the best rates available for your financial profile.