Great Mortgage Rates Stick Around … For Now
Unless the Federal Reserve raises its funds rate this year, mortgage rates may not move much higher. This according to a recent CNBC article reporting an increase in mortgage rates following to a U.S. bond market selloff.
Housing-related stocks took a dive as a result, but don’t forget: The average contract interest rate on a 30-year fixed mortgage is still at a historic low—under half its historical average, in fact.
Rising mortgage rates have the effect of discouraging individuals who want to buy a house. For homeowners, however, rising rates could give them a reason to seek a mortgage refinance. Even with rates sitting at near-record lows for months, lots of borrowers who have been meaning to take advantage and reduce their monthly payments will see rates go up and decide to act before they miss out.