Mortgage Rates Decline – Good News for Homebuyers on the Fence

mortgage rates decline featured image

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.