Even though the pandemic is hopefully beginning to slow down, fewer homeowners have returned to making regular mortgage payments. As a result, mortgage rates have risen and returned to the higher levels we’ve seen in months.
Because the changing of mortgage rates are becoming more and more difficult to predict, it’s becoming increasingly harder to give specific advice in regards to what to do with your funds right now.
On one hand, the main driving force behind the drop, the pandemic, has mostly died down, especially with the release and distribution of the vaccine, but on the other, there seems to be no reaction whatsoever on the side of the market.
In other words, the current mortgage rates are still fairly low, is not going to stay. When and how fast it will rise is, as mentioned, much more difficult to discern.
As banks begin to tighten their lending standards due to increase in forbearances, soon you may see increased down payment required to get a mortgage.
With history pointing to a rise in rates with an economic recovery, it’s likely in your best interest to lock in a mortgage rate as soon as possible.