3 Signs Your Window is Closing to Grab Historically Low Rates

Nobody likes a Chicken Little, especially when it comes to interest rates.

And we certainly don’t want to alarm you either.

But if you’re still on the sidelines waiting for the “perfect” time to take advantage of these historically low interest rates, your window may be closing. 

Rates are Officially Rising

The U.S. has enjoyed quite a housing boom over the past year due to low rates..

Rates for 30-year fixed mortgages first fell below 3% around July 2020.

Since then, rates for fixed and adjustable rate loans have remained low, leaving all of us to wonder: where’s rock bottom?

Based on what we saw in February, we’ve already been there.

February saw rapid increases in rates. The worst part? They were unexpected. 

My advice?

If you’re ready to buy or are looking to refinance your home, don’t wait much longer or you’ll leave money on the table.

Here are 3 signs it may be time to act now if you’re ready. 

Reason #1: Mortgage & Refinance Demand is Dropping

According to updated data from the Mortgage Bankers Association (MBA), rising rates are starting to cool eager purchase and refinancing demand. As mortgage rates inch higher, demand will likely continue to drop and there will be less savings for new home purchases and refinances over the next few months. 

Reason #2: Home Prices are Rising

Buyers all over the country are seeing a shortage of inventory and sellers’ markets, including here in Southern California. This is fueling a fast and steady rise in home prices, the quickest we’ve seen in 7 years.

While mortgage rates still hover at historic lows, rising home prices mean the spring housing market will be even more competitive.

If the time is right for you as a buyer, it’s best to go ahead and get pre-qualified so that when you find the house, you’re ready to make your move.  

Reason #3: Fixed Rates are Lower Than Adjustable Rates

Historically, initial rates for adjustable rate mortgages (ARMs) have been lower than those of fixed-rate loans. Right now, fixed rates are winning the race.

This means for a new home purchase or a refinance, you can lock in an ultra-low rate for the entire duration of the loan. This can save you thousands of dollars in the long run. 

We’re Here to Fund Your Home and Find You the Ideal Mortgage

At Full Circle Mortgage, our mission is simple: We fund your home.

Unlike big banks that use a one-size-fits-all approach, we find the perfect mortgage for your exact financial situation and get you the best rates and terms out there.  

Reach out anytime - whether you’re looking to buy your first home, refinance your existing home, or invest in the vacation home of your dreams.