When the pandemic began, mortgage interest rates started a steady trend downwards, hitting historic lows and setting new records week after week. Now that it’s been almost six months since Los Angeles first went on lockdown, are rates still on the same trajectory, or have they started to level out?
Freddie Mac’s Chief Economist said on September 3rd that he believes that at least for the next few weeks, we won’t be breaking any more record lows. Instead, we’ll be seeing a plateau or a minor rise in rates. It was also reported that the rate for 30-year fixed mortgages rose from the previous week’s 2.91% to 2.93%.
At the same time, 15-year fixed-rate mortgages went down from 2.46% last week to 2.42%, breaking a new record low. Although 30-years rates rose very slightly, it doesn’t change Freddie Mac’s original financial forecast made in August that in 2021 we’ll see rates hit a low around 2.7% at the top of the year.
But just because these rates are here to stay for the foreseeable future, doesn’t mean that you should procrastinate on refinancing your mortgage. As we mentioned last week, the FHFA announced that they would be tacking on a one time upfront fee for people refinancing their government-backed loans. Originally, this fee would go into effect on September 1st, affecting those who started their refi before the announcement but hadn’t yet closed the deal. After a lot of complaining by politicians and people in the mortgage industry, the FHFA didn’t walk back the fee, but they did extend the date to December 1st. (If you want to learn more, like how the fee amount is calculated, you can check out our article explaining everything).
That means, if you jump on a refinance right now, then you have a chance to get an incredibly low rate and close before December 1st so you can avoid the fee. So, get in touch with us today so we can get to work! Email us or gives us a call at (323) 412-9060 and we’ll get the ball rolling on your refinance right away.