Are interest rates up or down? Well, it’s kind of like the stock market lately. Current interest rates bounce up and down on a daily basis and normally only about a 1/4 point up or down, but last week (Friday) they had dropped below 4% for a conventional loan which is a big deal. I bought a new home in March 2014 and the interest rates were bouncing that 1/4 of a point and I ended up at 5.375% on a conventional loan. When they dropped last Friday I immediately called my preferred lender and asked about refinancing. When you refinance in a short period of time your closing costs aren’t as high and I could take about $70 off of my current monthly mortgage. If you look at $70 over say 15 years that’s $12,600 back in my pocket!
In closing I just want to say that interest rates always fluctuate from day to day and even from hour to hour. Normally bad news causes a drop in interest rates which is what happened last week. We have bad news with ISIL terrorism, the stock market loosing previous gains, Â and the ebola scare and the combination brought the rates down. With that said, current interest rates are at an all time low, but we know as soon as the government stops printing money the interest rates will probably climb rather rapidly to 6%. I say all of this to tell you that if you are thinking aboutÂ refinancing or purchasing a home you probably need to think about doing very soon as we all know prices and interest rates are going to be moving higher.
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