If you read my previous article about the Brexit Mortgage Relief that was underway about a month ago then I am sorry to say that this article is going in the exact opposite direction. In the 2 weeks following the publishing of my article, I can say that the Brexit Mortgage Relief was short lived and that the Brexit Mortgage Relief Is Over. It seems that as soon as all the news stories broke about the interest rates falling, the last 2 weeks have pushed rates higher and all of a sudden we are looking at rates on the rise.
Now, this isn’t to say we are seeing interest rates increasing rapidly, but rather over the last 2 weeks rates have increased over .05% with Freddie Mac (1 of the two main Government Sponsored Enterprises who oversee the financial market when it comes to mortgage rules and regulations. The other GSE is Fannie Mae) reporting that the 30-year fixed-rate mortgage rate increased from 3.42% to 3.45%. In the same time period, the 15-year fixed-rate mortgage also increased by .03% from 2.72 to 2.75%. This data is compiled by Freddie Mac surveying mortgage lenders on a weekly basis in order to determine which way interest rates are moving. Given that the last 2 weeks rates have increased you can almost determine that Brexit Mortgage Relief Is Over. It seems that when my article posted, mortgage rates were at the lowest they were going to get and since then, the rates have been steadily increasing.
If you are still in the market for a home or a refinance you can still rest easy knowing that rates are still near historic lows and are more than .5% lower than this time last year where the average rate on a 30-year fixed-rate mortgage was slightly over 4%. When you read financial news, the common thought is that even though the Brexit Mortgage Relief Is Over that rates will still stay fairly low through the end of the summer and into the early fall with the consensus being the Fed will probably choose to keep their rates unchanged, however there is still a chance of a .25% rate increase by the end of the year.
Even though the Brexit Mortgage Relief Is Over let’s take a look at the numbers to see that if you have a $200,000 mortgage at a 4% rate you will be paying a $955 monthly payment, however, if you can refinance now to a rate of 3.5% the monthly payment will drop to $898 for a savings of $57 per month or almost $700 annually. So there is no reason to panic if the rates start to increase slightly and now is still a great time to purchase a home or refinance an existing loan. If you are looking to get a preapproval or refinance your mortgage, please reach out to me ASAP and we can get started. I can be reached any time at 888-900-1020, firstname.lastname@example.org, or www.loanconsultants.org.