Current Mortgage Industry Q & A
2020 was just about the craziest year in recent history for many reasons, but the mortgage industry provided one of very few bright spots. Rates were at all time lows and seemed to get lower every week. We are now halfway through 2021 and the surprises in the mortgage world just keep coming. Case in point, the months of June and July. While rates had ticked up ever-so-slightly early in the year, they dropped right back down in late June and have stayed there through the month of July. The current housing market and the interest rate environment have prompted many consumers to have questions about what this all means for them, and what to prepare for next. Needless to say, if you have questions about what is happening in the mortgage world right now, you are not alone. Read on for some commonly asked questions and our best attempts to answer them.
Why are interest rates dropping back below 3%?
Unfortunately the current COVID-19 conditions surrounding the Delta variant have produced some economic uncertainty. With real estate being so tightly connected to the economy and consumer confidence, that uncertainty has led to rates being pushed back down. When consumer confidence drops, generally so do rates in an effort to push consumers back out into the housing market.
Will interest rates continue to drop?
We may see another slight decline or at least a leveling off through the month of August but any huge drops are not likely. After the month of August we could see a slight increase, but again it all depends on the strength of the economic recovery.
What does this mean for me?
If you have an interest rate over 3% there is a possibility you could refinance at a lower rate and save money on your mortgage every month. If you are waiting to lock your rate on a purchase, now may be the time to take action. Either way, your Mortgage Consultant can take a look at your specifics and give you the best advice considering all factors.
How do you know if you can save in the current environment?
Your Mortgage Consultant at Cambria Mortgage is always available to run the numbers for you and let you know if it is beneficial for you to proceed with a refinance. If you just want to run the numbers on your own and keep track of how your rate compares, download the Cambria Mortgage Mobile App from either the App Store or the Google Play Store and check out our brand new calculators.
What if I am trying to purchase a new home?
There is no way to sugarcoat the current purchase environment, it is TIGHT, but that doesn’t mean it is impossible. Cambria Mortgage has tools in place to help you stand out in a crowded field of buyers. We know you have to move fast and look great to sellers and that is what we are here to help you do. From fully underwritten pre-approvals to in-house processing and a streamlined home financing process, we are built to help buyers succeed.
While there is no way to fully predict what will happen with interest rates and the housing market, Cambria Mortgage prides itself on staying up to date on all the latest products and tools to get you the best deal on your mortgage. Call us today at 952-942-0110 to chat about any of the questions you may have or visit our website at CambriaMortgage.com. Don’t forget about our new Cambria Mortgage Mobile App either! Find it today wherever you get your downloads.