Mortgage rates hit a historical low in 2020, prompting homebuyers to get a new or additional home and homeowners to refinance their homes to lower their interest rates. This phenomenon was brought about by the steady increase in mortgage-backed securities that pushed rates lower than the average. However, it will not last forever. In fact, despite the market being hot, interest rates have grown since 2020 and will continue to do so (albeit at a slow pace but growing nonetheless).
According to the OC Register, mortgage rates are expected to get to an average of 3.5% by the end of 2021 and increase to 3.9% by the end of 2022. This means that the best time to refinance is as soon as you can — but how soon is that?
Here are the best reasons to refinance your mortgage, how soon you can expect to be able to, and the importance of comparing your options.
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