It had to end sometime. This year’s historically low mortgage interest rates, at least for the time being, have come to an end. Rates have continued to rise for the 3rd week in the row, now passing 4% (for a conventional 30-year fixed-rate loan) in Connecticut and 3.74% nationally.
What does this mean? Interest rates below 4% have become very hard to find, but if you asked anyone five years ago about 4% rates, they’d have laughed at you – it wasn’t even imagined! So rates are still very good, they’re just not at historic lows. If your rates are higher you should still consider refinancing. Even a small reduction in your rate can add up to significant amounts over time.
If you are looking to refinance, get your paperwork ready. You don’t have to submit it immediately – you might want to see what happens to rates over the next couple weeks – but you’ll want to be able to jump on a rate when you’re ready to move. Remember, you’ll need tax returns, bank statements, information on previous addresses and recent credit inquiries, changes in marital status such as divorces, and more. It’s a lot of paperwork. You should be prepared to provide details about everything that has any affect on your money residency.
As mortgage rates rise, mortgage volumes have fallen off. Both purchase and refinance activity has declined, with refinance activity declining significantly to 74% of total national market volume (as of May 23, 2013).
For More Information:
http://www.washingtonpost.com/blogs/where-we-live/wp/2013/05/23/mortgage-rates-are-trending-upward/
http://www.foxbusiness.com/personal-finance/2013/05/23/mortgage-rates-rise-for-3rd-week-in-row/
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