Home mortgage rates have decreased to record lows. These low rates have prompted a sudden surge in refinancing, with more homeowners applying for refinancing this month than has been seen since May of 2009.
Charles DiPino Jr. of New Penn Financial says that they are “extremely busy”, with many calls being received throughout the past month. Freddie Mac has also reported that the average rate for a 30-year loan has dropped to around 4.36 percent. Such low numbers have not occurred since 1953.
As well, rates for 15-year fixed-rate mortgages are down to 3.86 percent as of last week. Adjustable-rate mortgages are also down to 3.52 percent. With the weak recovery of the United States’ economy, it appears that mortgage rates will continue to reach new record lows.
Still, most experts are advising homeowners to not wait to refinance. Although some believe that rates will continue to lower, this will only mean that the economy is getting weaker and weaker. Greg McBride, an analyst with Bankrate.com says that if you wait too long to refinance, and the economy has weakened, you might “lose your job and not quality for the lower rate.”
People refinance for several reasons. It can reduce monthly payments, but it can also reduce the loan term and allow people to depend on a fixed-rate loan. Still, the numbers are low, according to Freddie Mac. Although not everyone is able to qualify, most experts believe it is worth looking at for many homeowners.
