You’ve heard that mortgage interest rates are rising, but does this mean that you need to put your real estate goals on hold? How long do we need to weather this storm before interest rates fall to the low numbers we’re used to seeing?
While it’s impossible to give you an exact date, we can make some predictions about when we might experience interest rate relief. And no, you don’t need to play the waiting game until it happens! There are ways to score an affordable interest rate on your mortgage, but you might need to act quickly to get the best deal.
Current Trends in Mortgage Interest Rates
A few short months ago, the average interest rate on a 30-year fixed mortgage hovered around 3%. Today we’re looking at an average interest rate of 5% on the same mortgage. Analysts predict that mortgage interest rates could approach 6% this summer.
On the bright side, some financial gurus believe that we’re near the peak of these soaring interest rates. Unfortunately, it’s only a prediction. In truth, we don’t know what will happen, so if you want a mortgage, you might as well act.
Up until now, fixed-rate mortgages have been the way to go. If you want (or need) a mortgage today, it’s time to switch your thinking. An adjustable-rate mortgage (ARM) is now a leading option for many home buyers or real estate investors.
If you’re ready to act on your real estate goals, let’s talk about ARMs. Here are two things that you need to know about this option:
- Hybrid ARMs typically begin with a fixed-rate period, followed by a variable rate that adjusts according to a regular schedule.
- After the fixed-rate period, interest rates could either skyrocket, bottom out or be unremarkable, depending on the economy.
ARMs: A Temporary Solution To Soaring Interest Rates
If you need a mortgage now, consider an ARM. Initially, you’re likely to get a lower interest rate than a fixed-rate mortgage. When interest rates decrease, you can consider refinancing to a more budget-friendly option.
At MortgageDepot, we want to keep your interest rates low and your satisfaction high. If you are in the market for a mortgage, we have ARM programs to suit your needs.
Contact one of our loan consultants today to learn more!