Mortgage rates have dropped after a recent surge. Homebuyers are finding savings when shopping for a mortgage.
Mortgage rates have been steadily rising over the past year but recently experienced a steep climb. Beginning late January and extending until mid-February, rates for the 30-year fixed-rate mortgage reached 4.4%, a nine-month high. The average rate for a 15-year fixed-rate mortgage was 3.74% while the 5/1 adjustable rate mortgage had an average of 3.99%, the highest level since 2011.
The surge in rates reflects higher U.S. Treasury yields and rising costs of oil and other commodities. Along with increasing economic growth, inflation concerns also had an influence.
However, mortgage rates have since sharply reversed and are now slipping. The 30-year fixed rate mortgage was reduced to an average of 4.3%, the 15-year fixed rate mortgage declined to 3.62% and the 5/1 adjustable rate mortgage fell to 3.78%.
This decrease in mortgage rates is giving homebuyers an opportunity to get great deals on their loan. With rates taking a dip, this could attract potential buyers who may have decided to postpone their search for a home until later.
Experts are forecasting that mortgage rates will start to rise again soon. Although they are predicting further decreases over the next couple of weeks, it is important to take advantage of this period while rates are low. Homeowners looking to refinance a mortgage should research their loan options soon.
The fluctuation in mortgage rates over the past month has been a reminder of the uncertainty in the market. Uncertainty implies volatility, which can cause major financial losses if not carefully watched. Homebuyers should seek professional advice to make informed decisions prior to any purchase or refinance.
Mortgage rates have recently dropped from a staggering nine-month high. Homebuyers and homeowners looking to refinance should take advantage of this opportunity to get great deals as rates may soon start rising again.
