It’s a well known fact that the Covid-19 pandemic is far from over. This is why it’s believed that the month of August will hold true for low interest rates. With the increase in hospitalizations and deaths on a global scale due to the new Delta variant, it has put a drag on the worldwide economy causing investors to compete to purchase mortgage-backed securities. So what does this mean for you and your mortgage? Mortgage rates fall when investors compete to buy mortgages.
I know it seems like it has been repeated, but now is the time to refinance, cash-out refinance, purchase or consider a home equity loan. If you haven’t reviewed your current mortgage, now is the time to examine your options. You could be missing out on saving hundreds of dollars a month on your current mortgage.
July in a recap
Mortgage rates stayed low, period. Rates are affected by many factors, and sometimes they are manipulated from opposite directions. Generally speaking, if prices rise it has a higher inflation effect on mortgage rates causing them to tick upward. When the economy minimizes or faces slow growth spurts, it has a tendency to pull mortgage rates down.
News about the current housing market
The great news is that you probably could sell your home for more money than what you bought your current home for. The off-putting news is that finding your next home will come at a higher cost. Affordability has been the key word this summer and it has been taking a beating. With mortgage rates remaining low and home prices skyrocketing at historic speeds, many potential buyers are discouraged.