30-Year Rates Hover Near 6%
Mortgage rates on 30-year fixed conforming loans continue to hover around the low 6% figures, marking a 3-year low. This has sparked an increase in refinance applications, while bringing buying power to prospective homeowners.
Homebuyers May Get “More Bang for Their Buck”
Today’s lower interest rates may give prospective homebuyers the leverage to qualify for a more expensive home, without increasing their monthly payment. A common rule of thumb states that for every 0.5% drop in the 30-year fixed mortgage rate allows buyers to afford roughly 5% more home without increasing their monthly payment.
Additionally, by getting full pre-approval upfront, buyers can lock in the current interest rate while they shop – typically for 30 to 60 days, depending on the lender.

Who Benefits from Refinancing Now?
Current market trends could make refinancing a benefit for borrowers in several financial scenarios.
Lower Your Rate: Borrowers who purchased or refinanced at rates above 7% may be able to lower their monthly payment now. Borrowers who have improved their credit scores may also be able to lock in better loan terms.
Turn Equity into Cash: Homeowners who want to leverage their home equity to eliminate credit card debt or finance major expenses may benefit from a cash-out refinance.
Move From ARM to Fixed: Borrowers who want to lock in a more predictable loan program may consider moving from an adjustable-rate mortgage to a fixed-rate now. 
Reduce Long-Term Debt: Homeowners may consider switching from a 30-year fixed to a 15-year fixed to dramatically reduce their overall interest payment, build equity faster, and possibly eliminate Private Mortgage Insurance (PMI).
Whether you’re interested in buying a home or refinancing, lenders take other factors into consideration when determining your interest rate. Credit scores, Loan-to-Value (LTV), Debt-to-Income Ratio (DTI), loan type, and property type all come into play. 
We provide a complete loan analysis for every client, tailored to fit their unique financial scenario and goals. Give me a call if you have any questions about mortgage planning!