While rates for mortgages have been edging upwards, they are still at some of the lowest in history. And according to Greg McBride, a senior financial analyst for Bankrate.com, the trend of edging upwards is one that is likely not here to stay. “The U.S. economy is not out of the woods,” he states. “The European debt crisis has not been solved, we’ve got this looming fiscal cliff … there is no shortage of headwinds to the economy and there’s the possibility of more Fed stimulus. All it would take is one hiccup and we could see rates moving back down.”
According to the weekly survey published by Freddie Mac, rates on a 30-year, fixed-rate mortgage averaged 3.62% for the week ending Aug. 16. This is up from the 3.49% for the week ending July 26, but rates are likely to stay beneath 3.75% for some time.
Whenever the economy shows signs of improving, interest rates tend to rise. However, the strength of the economy is shaky, at best, and economists are unsure whether the rise in rates at the end of the summer is on the upswing to stay or short-lived. Additionally, the lack of stability in the Euro zone affects mortgage rates here at home, and if the European Central Bank continues to show signs of decline, mortgage rates in the U.S. will likely fall again soon.
However, even with the slight rise in rates at the end of the summer months, mortgage rates are still at historical lows. It’s important to remember that it is possible for rates to increase significantly within a short period of time, so if you’re thinking about a refinance, now is still the best time to do it. Get in touch with Choice Mortgage Bank now and see how you could take advantage of the amazing rates available for you. If you focus on watching rates to see if they dip lower, you might be in for a surprise when they top out again and you lose the opportunity to take advantage of historically low mortgage rates.