Is there ever a perfect time to refinance your mortgage? Mortgage rates are constantly shifting, and the market often shows uncertainty. Going off of that, it’s difficult to truly determine when you should lock a rate in. However, if refinancing is something you wanted to do in the near future, read below to see why you should get a head start on the process as soon as possible. In this case, you could save money just by getting an early start.
A strong economy means higher rates
We are a little over a few months into 2017, and the U.S. economy is proving to be strong in more than one way. The Federal Reserve’s decision for a quarter-point interest rate hike this month was very much driven by the economy’s robustness. Not to mention, the Bureau of Labor Statistics stated that 235,000 new jobs were added in February. To put the latest jobs report in perspective, the average number of jobs in 2016 was just 187,000. On top of the healthy jobs report, the unemployment rate moved down to 4.7 percent last month from 4.8 in January. It’s no surprise these reports were contributing factors to the March rate hike. The more the economy grows, the more confidence this gives to the Fed to raise rates.
While a strong economy is great news, mortgage rate shoppers are experiencing higher rates. It is predicted that the rate hike in March will be the first of three this year. Also, predictions for 2018 are already floating around with three rate hikes expected. People looking to refinance are sure to be busy going from lender to lender to try to lock in the perfect rate before rates rise any more. The good news is that rates this week have been on the lower side. This is due to a fall in the 10-year Treasury yield. However, with these future rate hikes, borrowers are likely to save more money by refinancing now.
If you are interested in viewing today’s rates before they adjust any more, click here!