Many have felt that mortgage rates for big lenders like Bank of America are going to rise now that the Federal Reserve isn’t buying mortgage-backed securities and they have gone up slightly as rates that were as low as 4.75% are now around or slightly above 5%. However, even a rate as low as 5% is a good deal for many homeowners looking to buy or refinance their home.
Homeowners typically have been refinancing to a 30-year fixed rate mortgage in order to get a lower mortgage payment that comes with a lower interest rate on their mortgage. However, many homeowners are worried that rising rates may be the last they see of the record lows that mortgage rates have hit over the past months, but for many, rates around 5% are still going to afford them the opportunity to get a lower mortgage payment.
Homebuyers are looking for low mortgage rates as they wish to enter the housing market that has low home prices and the first-time homebuyer tax credit. While rates may rise on mortgages, home prices remain affordable; so many analysts feel that homebuyers are still going to get an affordable rate on a home.
While there is no certainty in the world of mortgage rates, currently rates around 5% are offering homeowners and homebuyers a more affordable rate on their mortgage. However, homeowners and homebuyers are being cautioned to only buy or refinance if it is within their financial means to do so as mortgages are not something to be taken lightly.