Nothing lasts forever, and that’s certainly true of the record low mortgage rates we’ve enjoyed recently. Mortgage rates are on the rise as we continue to recover from the pandemic, although they’re still at historically low levels.
According to BankRate, the upward trend for mortgage rates is likely to continue through the year as more folks get vaccinated and back to work.
The Washington Post quotes Zillow economist Matthew Speakman as saying, “Mortgage rates have been pushed upward in the first quarter by general improvements in the economy, rising inflation expectations and the likelihood that more Treasurys will be issued to support the federal government’s plans for fiscal stimulus and other spending initiatives.”
As mortgage rates continue to rise, refinancing may slow down.
“We think refi volume is going to fall off pretty sharply, particularly in the second half of 2021 as the economy really finds its footing,” says Michael Fratantoni, chief economist at the Mortgage Bankers Association.
Fratantoni believes that the increasing mortgage rates may discourage refinancing, but they’ll still remain low enough to make it attractive to buy a home. In fact, he predicts record numbers of new mortgages in 2021.
“Even if mortgage rates are going to be high enough to curtail refi, they’re still going to be low enough to keep housing affordable,” he adds.
So, even though mortgage rates are on the rise, people still are able to secure great loan rates compared with what they were before the pandemic.
What It Means
According to BankRate’s mortgage analysis, here’s what current mortgage rates mean to your projected monthly payment:
- At the current 30-year fixed rate, you’ll pay $439.61 each month for every $100,000 you borrow, up from $438.51 last week.
- At the current 15-year fixed rate, you’ll pay $672.45 each month for every $100,000 you borrow, up from $670.09 last week.
We’re Here to Help
If you’re ready to buy a home and secure a mortgage now before the rates go even higher, we’re here to help. Send us a message or call us at 559-490-0207 today.