If you have been waiting for an ideal time to refinance your mortgage or to apply for a purchase loan, you may have been thrilled to see an improvement in interest rates. After all, home loan rates have been steadily creeping upward for several months, and they have been projected to continue rising throughout the rest of the year. While you may be excited about what this rate decrease could mean going forward, experts say that this slight decline will be short-lived.
Across short periods of time, mortgage rates fluctuate considerably. However, long-term trends tend to hold steady. This rate decrease is expected to be a small blip on an upward trajectory. Some experts believe that the 30-year mortgage rate, which is currently below 3 percent, may rise to 3.6 percent by the end of 2021. The 15-year mortgage is expected to climb as well. Keep in mind that this trend in interest rates impacts both fixed-rate and adjustable-rate mortgages.
What does this mean for your plans? Even a modest decrease or increase in an interest rate can play a major role in interest charges throughout the loan’s life. It may be difficult to time the short-term dips appropriately, so it may be wiser to focus on the long-term trends. With this approach, those who are in a financial position to move forward with the purchase of a new home or the refinance of an existing mortgage may benefit by doing so earlier in the year.
At MortgageDepot, our loan origination team keeps a solid eye on the pulse of mortgage rates. We actively help our clients take advantage of great rates and achieve their lending goals. Are you eager to learn about the loan programs that could be a smart match for you? Contact our experts at MortgageDepot today to get personalized assistance with your next mortgage application.
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