Rates for 30-year fixed mortgages have risen since the beginning of this year, reaching a plateau of 4.03% in July. However, just this week rates have dropped yet again to a steady 3.86%. This hasn’t happened since the lowest period back in June, and before that back in November of 2016.
So, what does this mean for people looking to buy a home, or those that already have a mortgage? Read on to find out.
Looking to buy a house
If you’re currently in the market to get a house, then now is the best month to move forward. This month and the next are slated for steady rates between 4.02% and 4.09%. Experts have warned that this trend cannot possibly continue, so now is the best chance you’ll have at seeing a low mortgage rate.
There’s no surprise here. It’s good old-fashioned supply and demand. The end of summer is the most popular time to lock in that new mortgage. The more people looking for a mortgage, the lower the rate. Experts have warned that this trend cannot possibly continue, so now is the best chance you’ll have at seeing a low mortgage rate.
Already Have a Mortgage?
If you’ve already locked your mortgage rate in, you can still take advantage of these low rates by refinancing. Rate and term refinancing are the best options to take advantage of these low rates, trading in your higher mortgage rate for a lower rate or shorter term.
There are methods to see how much you can qualify for. Using a mortgage rate calculator will estimate how much refinancing your home could save you, as well as how great of a rate first-time buyers can achieve. Essentially, refinancing can reduce the cost of your mortgage, putting hundreds of dollars back into your pocket every month.
There really is no reason to wait to take advantage of these rates. If you have any doubts or questions, don’t worry. We love helping people make their dream home a reality. And we love success stories. If you have any great stories about buying your new house this summer, please share them with us on Facebook and Twitter!