Now is a good time to consider buying or refinancing a home if you missed the boat on low mortgage rates in recent years.
The average 30-year fixed mortgage rate has fallen to less than 3.7% to start the year. That’s the lowest the rate has been in about a year.
Generally, the rule is to consider refinancing if you can reduce your mortgage rate by one percentage point or more. Or, consider the opportunity to reduce the term of your loan, say from 30 years to 15 years.
You probably should move quickly because rates may stay this low for only a matter of weeks.
Interest rates will move higher at some point when the markets get concerned again that interest rates will be pushed higher by rising inflation. For the moment, those concerns have faded, but for how long is unclear.
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