Homeowners that are looking to refinance their mortgage may have seen mortgage interest rates increase over the last week or so, but interest rates on mortgages are still quite low. Rates are currently around 5% on the popular 30-year fixed rate mortgage, which is a much lower rate than what some homeowners currently have.
Interest rates may be set to rise in the coming weeks and months as many feel the Federal Reserve’s buying of mortgage-backed securities was one of the only things keeping interest rates at record lows.
However, there is no guarantee that interest rates will rise as the mortgage industry and housing market are still having troubles and are far from thriving. Many feel that a jump in mortgage rates at the current time could hurt the mortgage industry as unemployment and low home values are still a problem.
Yet, homeowners that are looking to refinance are, again, able to get a low mortgage rate of around 5% and this also could bring a lower monthly mortgage payment as well, on mortgages like the 30-year fixed.
Remember though, refinancing isn’t always in a homeowners’ best interest so if you are considering refinancing, look at your personal financial situation and be sure it is right for you before proceeding.