Wells Fargo Mortgage customers who want to refinance their mortgages may have the opportunity of a lifetime! Mortgage rates are still low as they've been for years since the Great Recession, but that could soon change. Mortgage rates recently took their largest leap of the summer. And while it wasn't even a 1 percent shift, the small bump sent shockwaves through the stock market. Even though average mortgage rates are still around 3.5 percent -- which is historically low -- some housing experts are predicting the rates could skyrocket, which would make buying or refinancing a home more expensive. This might be the last chance to take advantage of what could be once-in-a-lifetime low mortgage rates. Whether you want to stick with Wells Fargo or explore your options, many lenders are offering great rates with competitive service fees. Don't miss out! Read on to learn more about how to make the most of today's historic rates before they're gone.
Mortgage rates tend to follow the 10-year treasury yield, and a recent bond market selloff prompted a jump in the mortgage interest rate. It was just a 0.8 percent increase, but it caused housing market stock prices to tumble.
The best time to refinance is now, while rates are still historically low. If recent financial indications pan out and rates go up, then mortgage refinancing may not be as feasible for some homeowners. It doesn't make much sense to refinance to a higher interest rate.
Mortgage rates have been at historic lows for the past three months, but hundreds of thousands of homeowners haven't refinanced even though they would save money. Reducing a mortgage is a great way to reduce monthly payments.
Multiple members of the Federal Reserve's board of governors have expressed a desire to raise interest rates. The last time rates went up was December 2015, and that was the first rate increase in nearly a decade.
Even mentions of an upcoming rate increase caused the Dow Jones industrial average to fall nearly 400 points. Meanwhile, the Nasdaq and Standard & Poor's 500 index declined by 2.5 percent. These downward shifts happened after Federal Reserve official Eric Rosengren didn't rule out a rate hike this month.
Better late than never, right? Mortgage applications were up by 2.8 percent at the end of summer, with most of those applications coming from homeowners seeking to refinance. That's because rates were nearly twice as high last year as they are now -- but these rates won't last forever.
If you bought your home while rates were historically low, then you have less to gain by refinancing. A mortgage refinance to lower your payments is much more likely to save you money in the long run if you bought your home several years ago when rates were higher -- especially if you bought prior to 2008.
With mortgage rates so low, it's easy to be swept off your feet by the first mortgage lender you talk to. Remember that rates are historically low, which means most mortgage lenders have the power to offer you fantastic rates. Do your homework and compare several offers before choosing lender to refinance your mortgage.