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Leah TenBieg

It's a good idea to refinance soon

Wednesday, March 22, 2017 - Article by: Leah TenBieg - Prospect Financial Group, Inc. - Message

Is it really possible to determine when the best time to lock your interest rate in is? The mortgage industry is constantly displaying much uncertainty, making this decision quite tough. However, as the U.S. economy strengthens, mortgage rate shoppers should be well aware of the fact that rates can climb at any moment. Locking in a rate soon might be in their best interest. See below some factors that may make those who are in the market to refinance speed their process up to save money.

A robust economy

The economy is showing no signs of slowing down, which was a huge factor in Fed Chair Janet Yellen's decision to raise rates this month. The Bureau of Labor Statistics indicated that 235,000 new jobs were added last month. This is much more than the average number of jobs in 2016 which was just 187,000. Another indication that the economy is gaining strength is the fact that the unemployment rate moved down to 4.7 percent last month from 4.8 in January. As the economy continues to grow, mortgage rates are sure to rise.

Future rate hikes

Just this month, the Federal Reserve decided to raise interest rates during the Federal Open Market Committee. This rate hike is the first of the expected three that will happen this year. Looking forward, 2018 is predicted to bring three more rate hikes.

When mortgage rate shopping, it's best to understand what is going on in the market so you will be able to know why rates are the way they are and how they can possibly be affected in the future. Going from lender to lender while being informed about what the future will bring for the industry could save you big money down the road.

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