Mortgage Rates Are on the Rise: What This Means for You
Here’s another helpful post from our friends at Business Insider. Check it out:
If you can refinance your mortgage at a much lower rate, it’s something of a free lunch (assuming all the fees don’t end up costing you more than they’re saving you).
But rates on 30-year mortgages are rising.
According to the latest report from the Mortgage Bankers Association, refis have now fallen for six consecutive weeks.
From Reuters: “The decline in refinancing was driven by a 12.0% drop in government refinance activity, while conventional applications fell just 3.4%, the report said.
“The refinance share of total mortgage activity slipped to its lowest level since July of last year at 71.9% of applications from 73.4%.
“Fixed 30-year mortgage rates jumped to their highest level since November to average 4.23%, up 4 basis points from 4.19%.”
This is not a minor issue.
The ability to refinance mortgages at lower and lower rates is a big part of what has allowed Americans to keep lowering debt service costs and keep spending.The Bonddad Blog had a great post about this last week.
If this continues, it’s not hard to imagine this playing into the Fed’s decision on whether to launch a further round of monetary easing with the idea of pushing down interest rates.
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