Mortgage Rates Projected to Continue Rising

Whether you have put off plans to purchase your next home or to refinance your current mortgage for any reason, you may have been dismayed to see interest rates rising for seven straight weeks in recent moths. Most recently, however, the interest rates for a 30-year fixed-rate mortgage and for a 15-year fixed-rate mortgage took a slight dip. This may seem like a promising sign that the rising trend has come to an end. However, many experts agree that the decline is a short-term trend. Interest rates are projected to continue rising over a longer projection period.

Despite the projection for a continued rise of interest rates, this short-term dip may indicate that the rates are close to reaching their ceiling or that the rate of their increase may be slowing. Some experts believe that the improving economy triggered by lower COVID-19 cases may cause bond yields to rise in the near future. When this happens, mortgage rates usually sink. Both upward and downward pressures are working against the interest rates. Timing the market is a risky endeavor because there are many influential factors, and this holds true today.

As you look forward and continue preparing for your mortgage refinance or for the purchase of a new home, the interest rates will undoubtedly continue to influence your plans. The benefits of refinancing for many homeowners may be reduced as rates continue to rise. For current homeowners who plan to upgrade or downsize, the housing market as well as rising interest rates could make this prospect far less attractive in the coming months. With this in mind, those who are considering applying for a new mortgage in the near future should carefully monitor the housing market as well as the mortgage rates. The MortgageDepot lending team is available to help you explore your current options for a purchase or refinance loan.

Contact one of our loan consultants to learn more.