Low Mortgage Rates Could be a Boon for Homebuyers and Refinancers
Homeowners looking to refinance their mortgages may be in luck – mortgage rates are currently lower than they have been in recent months. According to Bankrate, the average 30-year, fixed-rate mortgage refinance rate is averaging 6.44%, while 15-year, fixed-rate refinance mortgages average of 5.76%. For 20-year mortgage refinances, the average rate is 6.43%, and for a 5/1 adjustable-rate mortgage, the average rate is 5.30%. The average interest rate on a 30-year, fixed-rate jumbo mortgage refinance is 6.45%.
Last week, the average rate for a 30-year, fixed-rate mortgage refinance was 6.57%. This week, the average rate is 6.44%. The 20-year fixed mortgage refinance is currently averaging about 6.43%, compared to the average of 6.45% at this time last week.
Applications to refinance mortgages fell 7 percent for the week and are 80 percent lower from the same week a year ago. The amount of home purchases decreased by 10% compared to the preceding week.
Although mortgage rates have fallen from their recent highs, they are still well off their historical lows, so homeowners may still struggle to benefit from refinancing. However, the Federal Reserve has recently signaled that it will continue to raise rates in the coming months, which could result in higher mortgage rates.
If you're looking to buy a house or refinance, consider using Credible, a personal finance marketplace, to compare multiple lenders and see prequalified rates in just a few minutes. A range of factors – including your down payment, credit score, loan-to-value ratio and debt-to-income ratio – can all affect the interest rate on your mortgage, so it's important to shop around and compare different lenders.
With the current market conditions, now could be a good time for some first-time homebuyers to become homeowners. Prices are dropping in many areas, housing supply is rising, sellers are offering more concessions and mortgage rates are falling.
It remains to be seen if mortgage rates will reach sub-6% levels in February. But, with the current market conditions, now could be a good time for some first-time homebuyers to become homeowners.
0. “Today's Refinance Rates: February 2, 2023—Rates Decrease – Forbes Advisor” Forbes, 2 Feb. 2023, https://www.forbes.com/advisor/mortgages/refinance/mortgage-refinance-rates-02-02-23
1. “Mortgage rates keep dropping, making housing affordable for millions more: Freddie Mac” Fox Business, 2 Feb. 2023, https://www.foxbusiness.com/personal-finance/mortgage-rates-drop-millions-homebuyers-qualify-freddie-mac
2. “Mortgage Rates for Feb. 1, 2023: Rates Decline” CNET, 1 Feb. 2023, https://www.cnet.com/personal-finance/mortgages/mortgage-rates-for-feb-1-2023-rates-decline/
3. “Today's mortgage rates see a sudden surge | Feb 3. 2023″ Fox Business, 3 Feb. 2023, https://www.foxbusiness.com/personal-finance/todays-mortgage-rates-february-3-2023
4. “3 Housing Market Predictions for February” Nasdaq, 31 Jan. 2023, https://www.nasdaq.com/articles/3-housing-market-predictions-for-february
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