Mortgage rates fall as rising inflation creates consumer doubts
Here's how homeowners can take advantage of low rates
Mortgage rates dropped for the first time in weeks, holding below 4%, according to Freddie Mac. (iStock)
Mortgage rates decreased for the first time in weeks, dropping slightly after nearing the 4% mark last week, according to the latest data from Freddie Mac.
The 30-year fixed-rate mortgage decreased to 3.89% annual percentage rate (APR) for the week ending Feb. 24th. This is down from 3.92% last week and up from 2.97% last year.
"Even with this week’s decline, mortgage rates have increased more than a full percent over the last six months," Freddie Mac Chief Economist Sam Khater said.
If you want to take advantage of this dip in rates, you could consider a mortgage refinance to potentially help you save money on your home loan. Visit Credible to find your personalized interest rate without affecting your credit score.
Spring homebuying season expected to start with higher rates
The 15-year mortgage rate also dropped this week to 3.14%, down from 3.15% last week and up from 2.34% last year. The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) remained unchanged from last week's 2.98%, a decrease from 2.99% last year.
While mortgage rates took a dip this week, Khater said he expects they will begin increasing again as we approach the spring, which is a common time for homebuyers to purchase their home.
"Overall economic growth remains strong, but rising inflation is already impacting consumer sentiment, which has markedly declined in recent months," Khater said. "As we enter the spring homebuying season with higher mortgage rates and continued low inventory, we expect home price growth to remain firm before cooling off later this year."
If you want to take advantage of the current low rates to buy a home or refinance your current loan, you can visit Credible to compare multiple mortgage lenders at once and choose the one with the best mortgage rate for you.
HOME EQUITY SEES LARGEST DECEMBER MONTHLY GROWTH IN HISTORY, DATA SHOWS
How homeowners can take advantage of low rates
Although mortgage interest rates have been trending upward lately, interest rates in the 3% to 4% range are still historically low. Homeowners that want to take advantage of lower rates could consider getting a mortgage rate lock when interest rates decrease.
The latest analysis from Black Knight showed that 3.8 million homeowners could still benefit from refinancing their mortgage. The average borrower could save at least $284 per month, but about half a million borrowers could save $500 or more on their monthly mortgage payment.
Comparing current mortgage rates from multiple lenders can also ensure borrowers are getting the best rate available to them. Contact Credible to speak to a home loan expert and get all your questions answered.
Have a finance-related question, but don't know who to ask? Email The Credible Money Expert at moneyexpert@credible.com and your question might be answered by Credible in our Money Expert column.