Alarm bell sounded by CNET writer Justin Jaffe: Don’t miss out on saving thousands
Journalist Justin Jaffe, writing for CNET, noted that it is time to move forward if you have been thinking about a mortgage refinance. Jaffe’s argument is sound. Essentially, millions of people in the United States can still save tens of thousands by refinancing. However, it is urgent to act and get these potentially once-in-a-lifetime rates.
Mortgages Rates Expected to Rise Soon in Response to Federal Reserve
As his core evidence that it is time to break through the procrastination bubble and apply for a refi, Jaffe noted that rates are about to rise. While economists have suggested the same previously during the COVID-19 pandemic, this situation does look different.
The rates that the mortgage market has enjoyed since spring 2021... are about to increase. (per Justin Jaffe, CNET)
As Jaffe indicated, the rates that the mortgage market has enjoyed since spring 2021 — record-setting rates repeatedly dipping below 3 percent for all major types — are about to increase. They will rise because the Federal Reserve is expected to bump up interest rates, in response to a confluence of economic trends.
While Jaffe noted that it is impossible to know how the market will develop for certain, it seems likely that refinance rates will be gradually but progressively increasing.
What is the Lowest Interest Rate That Makes Sense to Refinance Right Now?
If you are thinking about a refinance, you want to know it is worth your while. Jaffe recommends refinancing today if your rate is 3.5 percent or above — although an analysis from licensed mortgage professionals can help you determine what is in your best interests.
Jaffe recommends refinancing today if your rate is 3.5 percent or above.
Current Rates Are Still Incredible
Mortgage rates rise and fall from year to year, and watching the numbers may not hold much interest for you. When a mortgage specialist or a finance expert in the media says it is urgent to refinance, it may seem unimportant. However, this situation is a bit different, just given the incredible depths to which rates have fallen throughout the pandemic.
Per CNET’s data aggregation, rates are up week-over-week as follows for three different fixed-term refinance mortgages:
(Term; This Week’s Average; Last Week’s Average; Percent Rise)
10-year — 2.38 percent; 2.25 percent; 0.13 percent
15-year — 2.44 percent; 2.28 percent; 0.16 percent
20-year — 3.15 percent; 3.01 percent; 0.14 percent.
These rises are small. Rates remain historically low. Now is the time to refinance.
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