Mortgage rates fall: Is it a good time to refinance my mortgage?
The average interest rate for a traditional mortgage has fallen to the lowest level since February, but is now a good time to be buying a house?
What's happening to mortgage rates?
The average interest rate for traditional 30-year mortgages decreased to 3.09% last week, the lowest level since February, from 3.15% the prior week.
Rates continued to fall across the board this week for different length mortgages, except for a 15-year fixed-rate mortgage. All fixed-rate mortgages have decreased in interest in comparison to this time last year.
US weekly average mortgage interest rates
- 30-year fixed rate mortgage: 2.88% (down 0.02 in a week and down 0.10 in a year)
- 15-year fixed rate mortgage: 2.22% (up 0.02 in a week and down 0.26 in a year)
- 5-year fixed rate mortgage: 2.47% (down 0.05 in a week and down 0.59 in a year)
Analysts say this should offset the rising price of houses; low mortgage rates mean the cost to finance a house should stay the same or slightly decrease.
Despite this, home sales have fallen for the fourth month in a row as there simply aren't enough houses to buy. Rising home prices combined with insufficient supply has continued to impact the housing market.
The low-interest rates must also be seen in the context of rising inflation across the US which should offset the interest rates somewhat. Inflation rose to a 13-year high last month, a rise of 5.4% after a rise of 5% in May.
The movement in mortgage rates over the past week confirmed that the Fed is very much in the driver’s seat when it comes to the trajectory of interest rates these days. https://t.co/6W4KA3oXuq— MarketWatch (@MarketWatch) July 15, 2021
Is it a good time to refinance my house?
Melissa Cohn, an executive mortgage banker at William Raveis Mortgage, said now is a good time to revisit financing your mortgage.
It could be a chance for those who missed out on the low-interest rates of February to save some money on their mortgage.
And American homeowners are taking the opportunity to do this.
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