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For a while, refinancing activity was slow. That’s because mortgage rates have been soaring and have recently reached their peak, leaving homeowners feeling less than interested in refinancing.
But as you may have heard, mortgage rates are now on the decline, and are expected to continue dipping throughout this year and next. In this article, we’ll take a look at why refinancing applications are on the rise, and if this is a good time for you to refinance.
For a couple of years, mortgage rates have been on the increase. In fact, rates increased so much that it made it very expensive to take out a mortgage or refinance. Homeowners who have been on the fence about refinancing have held off.
But since October 2023, rates have started to reverse trend. Now, they’re on their way down and will continue to decrease throughout this year and next.
Many people make their decision to apply for a refinance based on a combination of their personal situation and changes in rates. You can actually set up a rate tracker to help you stay on top of the trends yourself.
The British referendum to leave the European Union has caused a big stir internationally. As a result, rates have dropped even lower than they already were, and they’ve come low enough that most homeowners couldn’t possibly hold out for much better.
Naturally, rates change frequently depending on many variables, but you can easily get a rate quote right now without any hassle. With this information in hand, it’s possible that you’ll find yourself in a position to take advantage of current trends, too.
A home that is worth less than the mortgage cost would force a homeowner to come out of pocket in order to refinance; this is not a very ideal situation even when rates are low.
But home values are generally still increasing, and now many of those homeowners have paid down the principal and gained some equity. Home values across the country have increased 2.2% over the past year alone, and have soared nearly 50% over the past 5 years. This has significantly increased home equity for homeowners.
If you want to see what your home is worth, you can get a home value report. Of course, you’ll have to get an official appraisal to refinance, but a home value report can be a great indicator of whether it’s even worth pursuing.
Perhaps one of the most important things we take for granted is that it’s really not hard to get a mortgage refinance. With a little knowledge and the help of an experienced loan officer, most homeowners can take advantage of a refinance right away.
Click the button below to download our ebook on how to refinance before rates go up.
Will you need mortgage financing to buy a home? We can help. Sammamish Mortgage has been serving buyers across the Pacific Northwest since 1992 including WA, OR, CO, CA and ID. We offer a wide variety of mortgage programs and products with flexible qualification criteria. Please contact us today with any financing-related questions you have.
Whether you’re buying a home or ready to refinance, our professionals can help.
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No Obligation and transparency 24/7. Instantly compare live rates and costs from our network of lenders across the country. Real-time accurate rates and closing costs for a variety of loan programs custom to your specific situation.