Average rates for fixed term mortgages across the US are now at their lowest recorded levels in over 60 years. Investors who have been discouraged by the euro-zone crisis are continuing to pile money into safer havens back in the US, pushing rates ever downwards. Furthermore, the Federal Reserve is also toying with ideas as to how to push the rates down even further.
So, does that make right now the best time to secure an excellent refinance deal, or would it be more profitable to hold out for further reductions?
Well, the simple answer is that neither would be a bad idea, as to refinance now could potentially save millions of Americans tens of thousands of dollars on their current terms. Likewise, a further drop would inherently make the savings even greater, but even losing out on the risk and facing a fractional rise would still offer incredibly low rates when compared to the last six decades – therefore it is something of a win-win situation.
Of course, there is always something of a gamble when it comes to those intent on waiting for rock-bottom and unwilling to accept anything else, as decreases in mortgage rates have a habit of coming about slowly while increases can well and truly rocket.
Needless to say, the figures have not gone unnoticed and while the housing market looks set for one of its worst years on records for new purchases, refinance activity once again saw a surge of over 11% last week alone.