Mortgage Market Update
US mortgage rates saw yet another modest downtick for the week ending September 21st, thanks in large part to the continuing efforts of the Federal Reserve offering US mortgage-backed securities (MBS) through quantitative easing (QE). The Bank of Japan joined the US in their efforts to stimulate their own economy, taking their lead from both the US Federal Reserve and the European Central Bank.
News directly impacting mortgages
Housing data continues to be postiive, making lower mortgage rates even more helpfulo. Existing home sales reported for August were at the highest level since May of 2010, housing starts were up and new building permits have climbed to their highest levels Regardless of whether you are interested in buying a new home or prefer to build a new home, this is great news. Confidence in the home building market is also growing, according to the National Association of Home Builders, September saw the index rise for the fifth straight month. This also represents a milestone, the highest level since June of 2006.
What it all means
One of the best things that this market shows is that any homeowner who still has a mortgage with a rate in excess of five percent, may want to consider refinancing. Refinancing can mean a savings of hundreds of dollars a year, can help reduce the term of your existing mortgage and may even help you pay off some existing credit card bills. While not every homeowner should consider refinancing, many can and should.
Whether you purchased your home at the height of the mortgage market and find yourself paying an underwater mortgage or, you feel your monthly payments could be lower, this may be the right time to consider refinancing your mortgage. Core Mortgage Financial can help you determine if today’s low rates can benefit you. We take pride in the fact that we offer one-on-one service and provide each client with the information they need to make a smart decision based on their own financial situation.