A record number of homeowners are eligible for a refinance. According to Black Knight, 11.7 million mortgage holders can now get a lower rate and save hundreds of dollars every month.
This comes as we continue to see the downward trend of mortgage rates. According to National Association of Realtors Chief Economist, Lawrence Yun, fixed mortgage rates could fall to 3.3% by the end of the year as the nation’s economy slows. The last time rates were trending to be that low was back in November of 2012 where the lowest they got was 3.31%. Currently, the average 30-year fixed-rate mortgage is at a three-year low of 3.49%.
This prediction is in line with the Jobs Report. Last week, the Labor Department released figures that showed the economy slowing down a bit. Total nonfarm payrolls in August climbed 130,000, which was below the forecasted number. Due to the economy slowing down, the Federal Reserve is more likely to cut mortgage rates again in their next meeting which would lead to mortgage rates trending lower throughout the rest of the year.
Lower financing costs for homeowners means they can save hundreds of dollars each month. Also, for potential homebuyers, this would give them more buying power. Currently, home prices are not lowering due to lack of inventory. According to Yun, “housing inventory has recently stopped rising, putting upward pressure on home prices of moderately priced homes.”
There is still a shot for the economy to turn itself around with increased home building. But for now, anyone with a mortgage should be talking to a professional to see what their options are to save money.
We can do this consultation for free and help you navigate your mortgage to saving you more money each month. We can also do a refinance at no cost to you. We cover any fees associated with the refinance and ensure that you are on a path to gaining more wealth through homeownership.
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