Experts Weigh In on Mortgage Rates
Mortgage rates have been hovering around historic lows, but what exactly does that mean when buying a home? Generally speaking, it means you can afford more home for your money, as less of your monthly mortgage payment will go towards interest. This is why many experts in the field agree that the current low interest rates present buyers with a great opportunity to invest in a home. Here’s what some of these experts have to say.
Mortgage Rates and Buying Opportunities
“As the economy works to get back to its pre-pandemic self, and the fight against COVID-19 variants unfolds, owners and buyers continue to benefit from some of the lowest mortgage rates of all-time. Largely due to the current environment, the 30-year fixed-rate remains below three percent for the fifth consecutive week while the 15-year fixed-rate hits another record low.”
“As we get closer to fall, we expect clearer guidance from the Fed on the likely path forward, which we expect will involve a pullback in monetary support. Thus, we expect mortgage rates to fluctuate near historic lows through the summer before beginning to climb this fall. Those who haven’t yet taken advantage of low rates to buy a home or refinance still have the opportunity to do so this summer.”
“It’s no secret that rates are going to go up. Tapering — when the Federal Reserve will begin slowing its purchases of Treasury bonds and mortgage backed securities that it began buying last year in order to stimulate the economy — is undoubtedly on the horizon. Now is the time to consider purchasing a home or refinancing your mortgage under the current low-rate environment while it still lasts.”
While mortgage rates are still low today, they are predicted to fluctuate before increasing. Even small increases in the mortgage rate can have a significant impact on your monthly payment. So, today’s rates present the perfect buying opportunity for potential buyers.