Signs of a Shift: What Falling Rates Could Mean for Homeowners
Are interest rates really coming down? This is the million dollar question that everyone wants to
know regarding the housing market. The answer is….. We are headed in the right direction!
Since the refinance boom that happened during the Covid years, everyone has seen rates go
steadily up for the past three and a half years. Over the past 3 months we have started to see a
slow progression of interest rates trending down.
Why is this positive news? Because it is the first consistent rate decrease that we have seen
since the COVID years when rates were in the 2s and 3s.
So what is the interest rate currently? This question is custom to your scenario. To ask that
question to anyone in the mortgage industry and believe that you can just receive an answer
back that is the standard is inaccurate. YOUR interest rate is always dependent upon multiple
factors. So the next time you want an accurate estimate about interest rates from a loan officer
be sure to mention these items:
- Your current loan product (IE. conventional, FHA, VA, etc)
- Your estimated credit score
- Your homes estimated appraisal value
- Your current principal balance
- Your current interest rate
Those items will be able to give you an accurate estimate of how to compare what rates are
today versus what interest rate you currently have on your mortgage. Once you know the
difference, then you can better plan on when to potentially make a move or refinance.
The golden rule of refinancing is that you should shoot for 1 point lower than your current
interest rate when refinancing your current mortgage. When moving and potentially going into a
higher interest rate than what you currently have, you want to look for a home where your equity
position and future appreciation have a high return.
