If you have been on the fence about refinancing your home, now is your last chance to get these lower rates!

Bonds have an inverse relationship with mortgage rates. So, when the bond market is doing well, the mortgage interest rates go down and vice versa. The Federal Reserve determines the policy that has been affecting the bond market. So in the last year, the Federal Reserve has been purchasing hundreds of billions of dollars in bonds, which has kept the mortgage rates lower. They announced in November of last year that they are tapering off on their bond buying. So they have started to buy less and less bonds per month. Sometime in March we expect them to stop buying bonds altogether. This is going to result in a large spike in interest rates. Expect rates to increase by at least a quarter if not a half percent increase.

You might be saying to yourself, “a half percent increase in interest rates isn’t all that bad” but for those who are trying to refinance your home your window may be closing. For those who purchased homes in the late 2010’s your rates would have been higher than what rates are going for right now. With this increase, it will push a lot of people away from refinancing since it would make their new rate higher or only marginally better than before.

As always, if you have any questions about the increase in mortgage rates or would like to do a refinance application, please contact Chissell Mortgage Group at (727) 376-6900 or go to our website https://www.chissellmg.com.

NMLS ID: 327290; NMLS ID: 2062741

Equal Housing Opportunity