What Mortgage Refinance Risk are Homeowners Taking?
Mortgage rates are epic right now in Minneapolis, throughout Minnesota, and nationwide. What unnecessary risk are homeowners taking in 2021?
Before we answer the question in the title, it’s important to understand current Minneapolis mortgage rates. Mortgage rates remain absurdly low nationwide, down year-over-year across all three mortgage types tracked in the Freddie Mac Primary Mortgage Market Survey (PMMS).
All three (30-year fixed-rate mortgage, or FRM; 15-year FRM; and 5/1-year adjustable-rate mortgage, or ARM) remained below 3 percent, hardly budging since last week. Furthermore, aside from 2020-2021, average rates like this have never been seen in more than 50 years of federal tracking:
30-Year FRM — 2.87 percent; down 0.06 percent year-over-year (YOY); unchanged week-over-week (WOW)
15-Year FRM — 2.18 percent; down 0.24 percent YOY; up 0.01 percent WOW
5/1-Year ARM — 2.43 percent; down 0.50 percent YOY; up 0.01 percent WOW.
Current Minneapolis Mortgage Rates
If you are interested in current Minneapolis mortgage rates, here are averages for the same for Minnesota (per Zillow; September 3, 2021):
· 30-Year FRM — 2.812 percent
· 15-Year FRM — 2.073 percent
· 5/1-Year ARM — 2.292 percent.
The especially positive news is that the current Minnesota mortgage rates are well below the national average, making things even easier on Minneapolis homeowners.
The Housing and Mortgage Markets are Improving
Freddie Mac explained that mortgage rates are stabilizing with the broader market, in response to a moderation in inflation acceleration and economic growth over the past 30 days. Home inventory is still extremely limited but is making incremental improvements. Home demand has stabilized. Home sales are higher than before the pandemic started. Together, these elements create a climate that will continue to remove pressure from home prices through the end of 2021.
What Risk Are Homeowners Taking in 2021?
Beyond understanding current Minneapolis mortgage rates, you also need to know how to avoid risk with your mortgage. Here is that risk: These low rates will not be around forever. Refinancing below 3 percent could literally be a once-in-a-lifetime opportunity. You could be saving for decades on the most expensive purchase you may ever make. The urgency to refinance is underscored by an economic rebound that is beginning to become more pronounced, despite the COVID delta variant.
If you are taking the risk of not reviewing your mortgage and seeing if you can slash your rate, you are not alone: quizzically, demand for refinances dropped 4 percent last week, per the Mortgage Bankers Association.
Get Your Best Refinance Rate!
It is one thing to discuss averages but quite another to discuss the perfect mortgage refinance for your situation. At Best Advantage Mortgage (BAM), we get to know you and your goals so we can tailor a loan to help you achieve them.
Take advantage of this historic opportunity. Apply Now.