Mortgage and refinance rates drop, great opportunity to buy a home and save On January 5, 2025, mortgage and refinance rates have recorded a weekly decline. This is good news for homebuyers and existing homeowners who want to refinance their existing loans at lower interest rates. Rates have been volatile for the past few weeks, but the decline this week has brought relief to people.
Read this:Amazon and Starbucks employees on strike
If you are thinking of buying a new home or want to shift your existing home loan to better terms, then this time can prove to be a profitable deal for you. Generally, the 30-year fixed-rate mortgage has seen an average decline of 0.10% over the past week, bringing it to around 6.40% now. At the same time, the rates of 15-year fixed-rate mortgage have also come down to 5.75%.
Refinance opportunities
For those who want to refinance their existing home loan, this decline can be a good opportunity. Refinance rates in the market are also at attractive levels at this time. The rates for 30-year refinance loans are now close to 6.30%, while the rates in the 15-year option have come down to 5.60%.
Mortgage and refinance rates drop, great opportunity to buy a home and save
This is the time for proper planning. If you want to reduce your monthly installments through refinancing or are planning to save total interest, then experts believe that at present you should focus on Fixed-Rate Mortgage.
Why is the weather favorable?
This change in interest rates is being seen due to the policies of the Federal Reserve and economic instability. Also, current market conditions are also the main reason behind this decline. Experts believe that this phase of decline may continue for some time.
At present, homebuyers should choose the right option based on their financial goals and credit score. With a good credit score, you can get better rates, which can increase your savings even more.
What’s the next step?
If you’re considering a mortgage or refinance, first compare your options. Use online calculators to estimate your likely monthly EMI and total payment. Then, check out the offers from different lenders and choose the plan that best suits you.
Read this:Best budgeting app to keep finances under control, keep a close eye on expenses
It’s important to act quickly to take advantage of low rates right now, as rates can change quickly. Speak to your financial advisor today and take steps in the right direction.
