Many homeowners have been refinancing their mortgage in order to lock in a lower interest rate on their home loan and also get a lower, more affordable monthly payment. However, the interest rate on a 30-year fixed rate mortgage, one of the most common mortgages to which homeowners are refinancing, is going up.
Homeowners have seen interest rates as low as 4.75% over the last few months but since the Federal Reserve stopped buying mortgage-backed securities, home loan mortgage rates have been around 5%. As of yet, interest rates haven’t gone up substantially as homeowners are still able to get a great interest rate and payment on their mortgage.
There are those who feel mortgage rates will continue to rise and homeowners are going to have to say goodbye to the record low mortgage rates that have been around. Yet, with many home prices low at the present time, there are those that feel new homeowners are still going to be able to get a great home at an affordable price.
While there is no guarantee that home loan mortgage rates are going to continue to rise, many hope they stay low for the present time and through the summer as homebuyers would be more prone to buy a house when rates are lower and that would help a still-struggling housing market.