As many buyers know by now, rates have risen somewhat in the last month, approaching levels we haven’t seen since 2000. They have since leveled off some as we head into September. The Mortgage Bankers Association reported an increase of 2.3% in new mortgage applications in the final week of August.
Some may also be surprised to learn that refinances are up 3% during the same timeframe. It may seem perplexing why a homeowner would refinance now, but the numbers make sense. A rate in the 8’s on cash-out refi to consolidate credit card debt accruing interest at over 20% makes all the sense in the world in terms of a cash flow perspective.
For new homebuyers, the name of the game is finding a payment you can stomach for the next one to two years until rates come down and it becomes advantageous to refinance. We won’t get below 3% again – nor should we – but the time will come when we get back to 4-5% mortgage rates.
Buying now still makes sense in a market like Charlotte, where homes are appreciating rapidly. In a market like this, the options to weigh are buying now at a higher rate or waiting a couple of years and pay more for the same house. Having a mortgage broker help you navigate these pros and cons in conjunction with a seasoned real estate agent is crucial to entering this market with confidence.
To get in touch, reach out to your Helen Adams Realty agent or contact Tom Baker directly.
About IntroLend Carolinas
IntroLend Carolinas is a mortgage marketplace that allows you to compare your options side-by-side, giving you the confidence to know you are receiving the best possible rate and terms. Helen Adams Realty has dedicated finance managers in their offices who have been in the mortgage and customer service industries for decades and understand how to take great care of any borrower in any scenario.