Never before 2009 had thirty-year fixed-rate mortgages fallen below 5%. Yet, despite all logical predictions over this past decade for rates to rise, they have remained at these historically low levels.
For months, I’ve been predicting mortgage rates might fall to new all-time lows. Now we’re starting to see those predictions coming true. For some borrowers, thirty year rates have fallen into the low and mid threes, with shorter-term mortgages like fifteen year rates even lower!
There are a number of reasons why rates remain low and continue to fall. Most people in the media talk about the pending recession, stock market losses, the coronavirus, and resulting interruptions in Chinese manufacturing supply chains. However, the real reasons driving interest rates are much more complex. (If this interests you, I’d be happy to discuss it.)
What most people want to know is, “Where is the bottom and when will we get there?”
No one knows for certain. Like other financial indicators, rates won’t drop in a straight line. We will see them rise and fall. However, the trend is downward, with industry experts predicting even lower mortgage rates in the coming months…possibly with thirty year rates in the two’s!
What does this mean for you?
If you’re thinking of buying a home, 2020 promises to be a perfect storm of stable home values and record low interest rates.
If you’re contemplating refinancing, even if you’ve already refinanced a year or two ago, it might be worthwhile to refinance again!
Contact me and I will complete a FREE analysis for you. The numbers won’t lie. I will help you make sense of the markets and decide when it might be best to pull the trigger.
Warren Goldberg is President of Mortgage Wealth Advisors, a Certified Mortgage Planning Specialist®, and a published author. His interviews include Blog-Talk Radio, Newsday, The Daily News, Anton Press, and the Long Island Herald. Since 1992, he’s been sharing his financial knowledge and wealth-building strategies, including how to properly use your mortgage as a financial tool. His clients regularly express their trust and appreciation by recommending friends and family call when in need of mortgage, real estate, and financial guidance.