Even As Rates Begin To Climb, There’s No Guarantee They’ll Be This Low Again

With interest rates hitting pandemic-era highs, many borrowers are waiting to move or refinance in hopes that the rates go back down. In this week’s video, Jamie Cavanaugh explains why that’s not the best strategy.


Hey everybody, it’s Jamie from Amerifund, and the hot topic this week of course, are rising interest rates, but I’m hoping that we can get a little bit of perspective.
In the more than two decades I have been in the mortgage business, I have seen many real estate cycles. From rates in the 8’s at the end of the 1990s, to 5’s just prior to the Great Recession. Never have rates been as low as they’ve been in the last couple years ever in the history of when they started tracking rates in the early 1970’s. To have been fortunate enough to assist thousands of clients in lowering their interest rates lower than they ever dreamed possible has been a real pleasure and it’s been extremely fulfilling to our team.
However, things have changed as of late. You may not hear too much about it, unless you are shopping for a home or looking at a mortgage loan, as it’s not really part of the current news cycle with everything else going on in the world, but yes, rates have gone up. The fed will be raising the discount rate to combat our current hyper-inflation, and the anticipation of this has caused mortgage rates to increase and the stock market to take a hit.
Still, what I am here to explain to you, is that rates are still great! Everything is about perspective. We are in the mid to upper 3’s for a standard 30-year fixed rates. Still amazing! Just know that you can’t get yesterday’s rate, and tomorrow’s may be higher. The lesson for today is, don’t be a fence-sitter. Fence-sitters pay more, it’s as simple as that.
We are helping people to refinance every day for a multitude of reasons, like taking cash out to pay off debt or doing home improvements. And the future; who knows? There’s speculation that once COVID is accepted into our new normal and inflation is tamed, we could test low rates again, but you really never know, and those who wait will always wonder, ‘should I have locked yesterday?’ For more information on interest rates and the market, feel free to give anyone on Team Amerifund a call today. Thanks for watching.

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