Mortgage Rates Decline - Good News for Homebuyers on the Fence

Milja Image
ByMilja
April 21,2021

The downward direction mortgage rates are taking indicates this is the time to buy a home or start refinancing mortgages.

The downward direction mortgage rates are taking indicates this is the time to buy a home or start refinancing mortgages.

The average rate for the 30-year fixed-rate mortgage dropped to 3.231% last week, showing a 0.015% decline in a single day. This rate drop is the first since mid-March.

Mortgage rates already decreased in 2020, and many homeowners seized the opportunity to refinance existing loans or get new ones. Others have bought homes thanks to the more affordable rates. In January 2021, the rates reached a record low for a short time before they rose back in February. More companies are thinking of using real estate CRM software to battle these sudden changes.

As for the near future, experts predict a continued rise in mortgage rates. The ascent will not be drastic, though, nor will it happen quickly. Different factors such as the Covid-19 situation and economic relief packages could affect the rates. They should remain low through the first half of the year, with a slight rise in the second half.

Even with the expected rate increase, this is a good moment to buy a home or refinance loans. With the 30-year fixed mortgage rate decreasing, you would currently pay principal and interest approximately $434.00 for every $100,000 borrowed. Property management software might be of great help here as well.

The average 15-year mortgage rate is also dropping, hitting 2.473% last week. The principal and interest should be $665 for every $100,000 borrowed. On the other hand, the average 5/1 ARM rate was 2.893% on April 15, showing an increase of 0.025% compared to the day before.

Joel Kan, associate vice president at MBA, said that the refinance activity has decreased for nine of the past ten weeks. Total mortgage application volume decreased 3.7% last week.

More from news

As people continue to feel the effects of the pandemic, many small business owners are struggling to keep their businesses afloat. The US Congress is considering House Bill 3807 to help small businesses with a $42 billion relief package. Erika Polmar, the Independent Restaurant Coalition executive director, said this bill would be a "lifeline" for around 2,700 independent restaurants in Oregon that applied for relief last year but never received it. House Bill 3807 now has to pass the US Senate, and we’ve yet to see how much relief small businesses will actually receive. If this bill passes, it will provide much-needed relief to small businesses across the country. As Polmar said: "The future of our industry, the 216,000 jobs that restaurants and bars provide Oregonians, are in jeopardy if we don’t replenish this fund."  If voted in, House Bill 3807 would help the Restaurant Revitalization Fund and support many other businesses impacted by the pandemic. With this bill, small business owners could apply for grants to cover expenses such as payroll, rent, and utilities, letting them avoid getting unfavorable loans to keep their business running. This would be a massive relief for many small businesses that have been struggling to stay open during the pandemic. And although many of them are busy again, they are now facing serious problems with inflation. "All of those costs have skyrocketed. So, what you may have seen happening in 2019 as a really great banner night is now barely making ends meet," said Polmar. Dwayne Thomas, the president of the Live Events Coalition, commented on the bill, saying: "We’re just in debt up to the hilt trying to stay open and relevant as now we’re going back to work. We’re going back to work amid a worker shortage, amid all kinds of supply chain issues, and we’re going back to work quite quickly." He also said that the $13 billion would be allocated to different businesses and divided into three rounds. The first round of relief will go to those who lost 80% or more of their income within the past two years.
By Goran · April 14,2022
According to the most recent data from the Bureau of Labor Statistics, February 2022 saw significant job growth.
By Vladana Donevski · March 10,2022
Despite some progress over the years, the gender gap persists in finance programs at top business schools.
By Julija A. · February 08,2022

Leave your comment

Your email address will not be published.


There are no comments yet