February is still cold and snowy, but millions of potential homebuyers will find the low mortgage rates quite heartwarming. Bankrate’s national survey of lenders found the rates ending in January 2021 at an all-time low, while the Mortgage Bankers Association noticed an upswing in mortgage applications. It seems people are lining up to take advantage of the ongoing low-interest rates. Is this the right time for you to make a move in the housing market? Will this trend last for a while for the borrowers to save thousands on their mortgages?
Things in the real estate market did not look so bright even at the beginning of 2021. Battered by the COVID-19 pandemic and ensuing economic recession, people were cautious about applying for home loans. But applications rose 8.15% for the last week of January after slackening for two weeks straight. The same week also witnessed an 11% surge in the refinance index – the highest since March 2020.
According to HousingWire data, the average mortgage rates for 30 and 15-year fixed and 5/1 adjustable rate mortgages have decreased in the week ending on January 29. This slight drop came after a little upturn touching around 3% in the previous weeks.
The rates are still pretty low for investors to make a move right now. With the rolling out of the COVID vaccination and several government steps for returning to normalcy, the rates are unlikely to be at multi-decade lows for the rest of the year.
The experts don’t predict a major surge in the rates anytime soon. However, taking prompt action provides investors with the benefits of the current low rates.
Sources: Housingwire.com & Bankrate.com