Are you wondering why mortgage rates are so high? Do you want to know how long this high rate environment will last? Me too!
I’ve been working directly in areas of mortgage interest rates, forecasting, hedging and securitization for 35+ years. I’ve learned a lot, including no person knows the future of rates.
Consider this: most lending experts setting the rates believe there is a higher probability that rates will NOT stay high for a long time and expect the 30-year fixed rate loans now will refinance to a lower rate in the next few years. “As the path of future interest rates becomes more certain, mortgage rates could FALL by roughly half a percentage point.”
Short-term solution: ARM loans. If a borrower is able to save 1% or more in their mortgage rate with an ARM (Adjustable Rate Mortgage), they are often taking that loan for 5, 7 or 10 years, saving them thousands each year versus the longer term loan.
How long will it take for rates to drop? I don’t have an answer. I recommend discussing with your financial advisor for their best guess.
For more detailed info, go to: Researchers at the Brookings Institution.
To get your BEST rate options, call Dan the Man for Mortgages at 714-310-4162.
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“Dan Stone was very helpful when it came to explaining every step of the process and helped us clarify when things would be done with closing. Got us the best deal with all options available to us. I would definitely recommend to friends and family. Thanks for getting us through it, Dan!” -Adriana C.