Refinance applications kicked off the first week of February with a surprising increase of 18%! Homeowners across the country are hurrying to lock in the current rate in fear of likely rate increases above 4%.
The average 30-year fixed rate was already up a bit to 3.75% as of second week of February 2022. Many of the new applications came from owners who have variable rate mortgages.
The past couple weeks are indicative of an upward shift in mortgage rates. Consensus is clear across the board that the best move for those who still have a variable rate mortgage is to lock into a fixed rate now.
The Federal Reserve has clearly stated that it will start “removing accommodation”, which means that the borrowing rates between banks will rise soon, increasing their costs.
Although the Fed’s rate decisions do not have direct link with mortgage rates, lenders are certain to move the interest rates upwards to pass on the cost of doing business.
It is a very good time to consolidate debts and save monthly expenses by refinancing and locking in a 30-year fixed rate.
