New drop in mortgage rates arriving just in time to perk up borrowing
LEXINGTON, Ky. (WKYT) - Both seasonal factors and a minor rise in mortgage rates drove both homeowners and prospective buyers from the mortgage market, according to new data collected before regulators tossed out a fee on refinancing loans which made rates drastically drop. Borrowers who were holding off are now able to save a great deal of money and have cheaper mortgage rates. Fiduciary retirement planning advisor Josh Smith with Strategic Wealth Designers joined us on the newscast to discuss why we are seeing such low rates and how you can get them.
“Many borrowers had been holding off due to high rates, but also most likely to COVID-19 restrictions lifting,” said Josh Smith. “However, since the rates have recently seen a significant drop, we are seeing mortgage applications at their highest rate since early May.”
Borrowers are not the only ones that would see the benefits of these lower rates. Homeowners could see them as well. The Federal Housing Finance Agency announced that they would be eliminating the refinance fee, known as the adverse market fee, as of August 1.
“Eliminating the adverse market refinance fee will allow current homeowners to take advantage of the low-rate environment to save more money,” said Smith.
While mortgage rates are low and continuing to fall, acquiring them does take some work, whether you are applying for refinancing or purchasing a mortgage. There are a few factors that heavily influence how you can get lower rates.
“Your history as a borrower will definitely influence the rate you’re offered, so get a look at your credit score and make sure it’s impressive,” said Smith. “Also, shop for the lowest mortgage rate in your area. Comparing different mortgage rates could save you thousands of dollars.”
If you are looking to pursue an encore career, consider discussing with a financial planner to ensure it won’t hurt you financially. To see additional stories surrounding business and economic news for the Lexington area, visit https://www.WKYT.com/MoneyMatters/ and if you have a question for Josh send an email to firstname.lastname@example.org.
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