July came to a close. Now, we are on our second half of the year. When we talk about ‘mortgage’, it is so far so good for buyers and refinancers. Beginning of the year, experts and analyst projected that rates will skyrocket this year. Mid-2017, that forecast has yet to happen.
Those who wish to purchase a home or refinance an existing mortgage should rejoice! Rates took a U-turn after what looked like the realization of the earlier forecast, as March’s rates hit 4.3 percent. For current and future homeowners, this is still a great time to get that low rate.
In July 2017, Freddie Macrates for the 30-year fixed-rate loan is at 3.97 percent. That is even hovering lower than the 4 percent mark. While rates are still at their lows, no one can ever be sure if it remains low in the next few months.
As of August 8, 2017, Wells Fargoreports that conforming fixed-rate loans with a 30-year term take a 4 percent interest rate. For mortgage loans guaranteed by the VA, 30-year fixed-rate loans have an interest rate of 3.875 percent. That is something that veterans may want to consider if they are planning to refinance their VA loans. For FHA mortgage loans, the interest rate is at 4.625 percent for 30-year fixed-rate home loans. The USDA loan rates take that of the VA’s rates.
Millions Are Refi-Eligible But Aren’t Refinancing
In a CNBC report, almost 4.5 million borrowers are eligible to refinance with a combined savings of $1.1 billion. That translates to an average savings of $260 a month. In a weekly survey by the MBA ending July 28, the refinance shares of mortgage activity fell to 45.5 percent from 46.0 percent a week ago. What could have caused this hesitation? It can be a lack of knowledge about the current rates or the misperception about the refinancing process.
Shopping around and speaking with different lenders will help you find out if it is a good time to refinance your mortgage, taking into consideration your current situation. Learning about the refinancing process and knowing the actual rates that may apply to your new mortgage will mean a big difference. If it a good time to refinance today? Find out now.