Mortgage rates in the U.S. remain extremely low, making it a good time to take advantage of refinance deals. Agreeing to a refinance deal before the presidential election and ahead of the Federal Reserve's mid-December meeting is essential.
This year has been good for rates. For example, fixed rates on a 30-year mortgage have been below 4 percent since January 20. Averaging 3.64 percent for the past two weeks, it is unlikely rates will remain this low for much longer, due to uncertainty over the election. The odds are also favoring a rise in rates after the Federal Reserve meets on December 14.
Brett Sinnott, vice president of San Roman-based CMG Financial, forecast reflexive reactions to the election results. Sinnott believes that if Hillary Clinton wins there'd be an increased likelihood of a rise in federal rates before the year ends. "If you wait, and something magical or crazy happens, you could end up shooting yourself in the foot if rates rise by a quarter of a point or half a percentage point," he said.
The refinancing window is still open, offering homeowners the chance to save on their mortgages. A report from the Urban Institute estimates that up to 13 million people have the opportunity to lower the cost of their mortgage repayments with a new refinance deal.