If you’re thinking about refinancing your home at the lowest rate possible, your window may be closing. The coronavirus pandemic has made refinancing your home more attractive — and affordable — but things could change quickly in the next few months. To ensure you're getting low rates, get started on your refinancing application today. Rates on home loans have hit historic lows, thanks to actions by the Federal Reserve in March 2020 to help strengthen the economy amid the pandemic. Given this news, it's no surprise refinances are booming. Homeowners want to snag a better interest rate, loan term, and lower their monthly payment in the process. However, the Federal Housing Finance Agency's new adverse market fee, which is equal to 0.5% of a total refinance loan has already made refinancing more expensive. And this could be just the tip of the iceberg. Harvard Business Review is reporting that the global economy is recovering faster than anticipated.
They speculate that at least part of the reason the economy is recovering so quickly is that many fears, including the next Great Depression, never happened. Additionally, while unemployment rates did increase, it’s lower than experts anticipated. The potential of a viable coronavirus vaccine did encourage a slight increase in rates the week after Pfizer and BioNTech announced their Phase 3 trial had concluded. Now, as people in the United States are being administered the vaccine, it's likely that consumer and investor confidence will grow -- and rates on home loans could continue to rise with it. While most financial experts agree that the Federal Reserve isn’t likely to raise baseline rates any time soon, mortgage rates could still move away from record lows over the next few weeks and months.
Source: Fox Business