Mortgage rates in the U.S. continue to be low. For many homeowners, this signals the ideal time to take advantage of refinancing options. Wintrust Mortgage's executive vice president, Bob Shields, expects the low rates to remain until at least the end of 2016, despite the Federal Reserve wanting to increase them.
Low rates have offered relief for many people wanting to get on the property ladder, with real estate cheaper than ever. The UK's Brexit vote to leave the EU added to the drop in mortgage rates. There is an end in sight, though. Federal Reserve Chair Janet Yellen has indicated that an increase may come towards the end of the year. Despite rates changing daily, 2016 has seen a downward trend, with the average rate for a 30-year fixed mortgage dropping to 3.625%.
With some small sign that rates could soon rise, it's the perfect time to make the most of refinancing options and home equity loans. Many homeowners across the U.S. have already taken advantage of the low rates, but those who have been busy with other aspects of life, or been too hesitant, should consider their options now. Mr Shields adds that taking out a home equity loan to consolidate outstanding debt is also a good idea because the market is currently full of competitive rates.
It helps that rates for home equity loans are lower than other interest charges, such as those for credit cards. Consumers need to act now to get the full benefit of a low mortgage rate or risk losing out when the rates rise.