While mortgage rates remain low, demand for refinances seem to be falling.
Strangely, the refi rates on America’s most common mortgage options have fallen significantly below historical averages despite the reviving economy. Most forecasters believe that todays rates won’t last, and consequently, that we should take advantage of them before they leave for good.
However according to the mortgage bankers’ association, many believe that if they continue to wait, mortgage rates will drop even lower. Forecaster Joel Kan, recently said in an interview, “…some borrowers (are) still waiting for rates to drop even lower”. Hopeful of the perfect opportunity to get the ideal refinance rate that everyone’s been looking for.
It may be time to look into how unlikely the rates will drop further, though. Many are already making an incredibly risky bet waiting for better mortgage rates. According to the government, there’s already been a sharp increase in the amount of jobs that have come out of the pandemic—1.8 million, to be exact. With the increase in workers comes an increase in spending, all of which correlate to the increase in mortgage rates.
In other words, try not to wait for the perfect time, it likely will not come. Get your refinance as soon as possible.