It's official. The recent and significant drop in long-term interest rates has led to a refinance boom. Many homeowners are moving out of adjustable rate mortgages that have been adjusting higher and higher, as well as out of fixed-rate mortgages with rates in the high six-percent range.
The Federal Reserve kept short-term interest rates the same last week as long-term mortgage rates saw a significant drop. Homeowners have a huge opportunity to take advantage of those low long-term rates, especially homeowners who have a rate higher than 6.5 percent and those who have an adjustable mortgage that is about to adjust.
Sales of existing homes were down for the month of August from the month before. But current interest rates and housing market still favor the buyer.
Fed leaves short-term rates alone; falling long-term rates spark mini-refinancing boom
Last time the Fed met, they halted their short-term rate hikes. They are expected to do the same when they meet again today. Rates remain favorable for folks buying a home or refinancing their mortgage.
Although housing has slowed somewhat recently, long-term rates still remain attractive. The Fed paused their rate hikes the last time they met and are likely to do the same again this week. The economy remains conducive to housing and inflation remains under control.
Having a hard time selling your old house while trying to get into your new house? Many people get a bridge loan or a home equity loan in order to get the money for the down payment they need. But there's a better alternative emerging in the housing market.
The consumer price index (CPI) report was released today, showing that the cost of goods is still rising. Today's report is an indication that inflation may still need to be controlled. What will the Fed do?
Mortgage interest rates go up and down according to many factors in the economy. One of those factors is the employment rate. How do unemployment and the number of jobs affect mortgage rates?
The Federal Reserve has raised rates for the 17th time in a row, raising the Fed Funds rate to 5.25 percent. The FOMC stated that "economic growth is moderating" and indicated that while they still might raise rates again in the future, inflation seems to be under control.