Homeowners Have Another Chance To Refinance As Mortgage Rates Fall Again

The average interest rate on a 30-year fixed-rate mortgage fell to 2.88%, according to Freddie Mac, the lowest level since mid-February and the third consecutive weekly decline. The 15-year fixed rate mortgage fell to 2.22%.

The downward slide could cause some weary buyers, who have considered forgoing their purchases, to return to the market with low rates.

“For buyers looking for predictable monthly payments, keeping rates low will allow them to continue looking for an attractive home with the peace of mind that their housing costs will remain stable for years to come with a low mortgage. fixed rate, ”he said. .

The number of homes on the market has increased in recent weeks, with listings up 5% last week as more sellers took advantage of record prices, according to Realtor.com.

“The influx of new listings is contributing to record price growth, providing more opportunities for buyers. However, affordability will remain a challenge for many first-time homebuyers, as the monthly payment for a typical home is still $ 116 higher this week than it was a year ago. “

It could be a chance for people who haven’t refinanced in the past year to do so.

In June, the number of refinancings decreased compared to the beginning of the year, despite rates as low as those in March. Refinances in which the owner improved their rate or term were down 30% in June from March and 60% from January, according to Black Knight, a mortgage data company. But cash-out refinances remain strong, accounting for 42% of all refinancings.

Now is the time to reconsider refinancing your mortgage, said Melissa Cohn, executive mortgage banker at William Raveis Mortgage.

She said the question is not why so many “missed the opportunity”, but rather, “Why can’t millions of people benefit from these tariffs?”

For most current homeowners, perhaps the best thing to do is sit down and do the math: think about how much it will cost you to refinance and how long you’ll stay in your home, Cohn said.

It may also be a good idea to take action related to a Home Equity Line of Credit, or HELOC, with low rates.

“Now is the perfect time to consolidate a first mortgage and a HELOC,” she said. “HELOC rates will be the first to rise when the Fed raises rates,” she said.

Cohn also said the situation with the pandemic, while improving, is still causing waves in the market. Banks are still not fully back to their pre-pandemic guidelines, she said, and with more employers demanding people return to the office, this is causing hesitation for buyers and consumers alike. sellers.