For the last several years, mortgage interest rates have hovered around an astonishingly low level. This has had a positive impact on the housing market and has spurred refinance loan applications as well. While many experts have been projecting interest rates to rise for years, this trend has ignited in recent weeks. As the interest rates have edged upward, the demand for mortgages has declined dramatically.
Specifically, the interest rate for a 30-year fixed rate is approximately .8 percent higher than it was a year ago. It was also .02 percent higher than it was last week. The Mortgage Bankers Association reports that the volume of new mortgage applications has declined by more than 5.1 percent since last week. Refinance mortgage applications have decreased by a comparable amount as well.
Looking forward, numerous factors may contribute to the acceleration of this trend. For example, Treasury rates are expected to continue rising as inflation and economic growth expand. In addition, the availability of homes for sale has declined dramatically in many areas. This is causing home prices to rise significantly while interest rates are also edging upward.
While these and other factors are constantly fluctuating, you may expect this trend to continue in the near future. At MortgageDepot, we want to help you take advantage of today’s interest rates. Whether you have plans to refinance your current mortgage or you have been waiting for a great time to buy a home, now is the time to consult with our lending team at Mortgage Depot and to explore your options in full detail.
Contact one of our loan consultants to learn more.