Friends and clients,
I have a quick update to share regarding mortgage interest rates. Whether you’re looking to buy, sell, or refinance, these numbers affect you.
Mortgage interest rates have dipped just below 3% once again. The average for a 30-year fixed-rate mortgage now sits at 2.98%.
The week prior, rates jumped back up above 3%. This was the first time in 10 weeks that rates had risen above 3%.
The news of rates rising above 3% triggered a pretty significant drop in mortgage applications. The Mortgage Bankers Association reported that they dropped by 6.9% last week. That’s their lowest level in almost a year and a half. There were declines in both refinance and purchase applications.
The drop in purchase applications caused them to hit their lowest level since May 2020. Buyers are having difficulties finding affordable homes in a housing market with critically low inventory.
Even if rates jump back up over 3%, mortgage rates will still be at some of the lowest levels in history. Homeowners can save hundreds of dollars per month by refinancing, and buyers can still lock in a very attractive 30-year fixed rate.
Hoping for rates to drop even lower is a big gamble. As the economy recovers from COVID, many experts (including Freddie Mac’s chief economist) predict that rates will gradually rise during the back half of 2021. If buying or refinancing is in your plans for the summer, it’s time to start the process now and lock in that rate while you can.
If you are looking to buy, you can get a jump on the summer market by taking a look at the homes that are available right now:
As always, if you’re thinking about buying, refinancing, or just have any questions, give me a call at 574-529-5228. I’m here to help.
Have a great day,