Mortgage Rates Hit Record Lows – Is It Time to Buy or Refinance?

Buried by all of the news stories about coronavirus and elections was a financial report that could have huge implications for homeowners carrying high-interest mortgages and shoppers in the market for their first home or trading up to a larger one. Average interest rates on a 30-year, fixed-rate mortgage recently hit record lows. MortgageDepot suggests that buyers looking for the right home and homeowners contemplating financing should take advantage of these record-low rates.

Now may be the time to act

The most recently reported mortgage rates, which average 2.81%, surpassed the previous record low of 2.86% set a month earlier. The fact that new record lows have been set 10 times this year may have people hesitating to submit an application to refinance an existing mortgage or to make an offer on a new home in the hope that rates will drop even lower.

While it may be true that waiting before applying for a mortgage may enable a borrower to reap the benefits of further declines in interest rates, waiting may also give time for other events to intervene, including:

• Changes in the economy causing mortgage rates to rise.
• Loss of a job.
• Reduction in work hours resulting in reduced income.
• Illness causing a loss of income and unpaid medical bills.

These and other scenarios could make the decision to wait before applying for mortgage financing a costly one.

Talk to the mortgage experts at MortgageDepot

Our experienced loan officers at MortgageDepot have answers for questions borrowers have about the current economic climate and mortgage rates. Contact us today at MortgageDepot.com.