Mortgage interest rates are testing the low points that we last saw in 2016. In spite of an economy that, by nearly every practical measure seems to be surging, (low unemployment, rising wages, spending up) interest rates seem to have fallen to a level that almost nobody saw coming. Below is an excerpt from the Freddie Mac August 15 release.
Mortgage Rates Remain Near Historical Lows
The decline in mortgage rates over the last month is causing a spike in refinancing activity – as homeowners currently have $2 trillion in conventional mortgage loans that are in the money – which will help support consumer balance sheets and increase household cash flow. On top of that, purchase demand is up seven percent from a year ago.
This would seem to be the best of all worlds. A healthy growing economy combined with cheap money.
The drop in mortgage rates has created opportunities for those who already have a low rate on their 1st mortgage, but may want to combine their 1st and 2nd mortgage. Others see an opportunity to take cash out of their home for things like college expenses or renovations.
Whatever your situation, the best time to review your mortgage to see if you are missing an opportunity is when rates are low, like now. You may find that this is the opportunity that you have been waiting for. You may also find that you are already well positioned and should stand pat.
In any case, it’s always better to be informed. So call us at 301 468-5600 for a checkup. We’ll know who you are and will always give you our best recommendation, even if the recommendation is to do nothing.
And . . . your call is always welcome at Primex.