Mortgage Rates Drop Sharply And Homeowners Pounce

LOS ANGELES, March 2, 2022 /PRNewswire/ --Lendgo-- This year's gradual but steady climb in mortgage rates was just halted amidst a backdrop of geopolitical angst. The average rate for a 30-year mortgage, which had risen to 4.18% (fixed) since the start of the year according to Mortgage News Daily, plunged to 3.90% yesterday.

"Mortgage rates are sinking as markets contend with the ramifications of Russia's attack on Ukraine," wrote Diana Olick at MSN. The window of opportunity for buying a home or refinancing at remarkably low rates was seen closing, but now it has been thrown open again, however briefly. Homebuyers, though, face a challenge finding a place to buy because inventory is low and home prices keeping rising.

Refinancers stand to benefit the most. People who already own a home see a welcome opportunity to lower their payment thanks to the one-two punch of this drop in interest rates and their climbing property values.

No wonder the popular quote comparison site Lendgo is reporting a sudden increase in people exploring their refinancing options. As suddenly as the average rate has dropped, it could rise again. With inflation weakening everyone's buying power, securing one of this week's surprise low rates can prepare homeowners to weather price increases in other areas of life.

A rate just 1% lower than your current rate can save you hundreds of dollars each month and thousands of dollars over the term of the mortgage. Plus, your increased equity puts the cash-out option on the table.

Get fast personalized quotes before rates climb again.

Volatility Requires Quick Action

If you want to refinance while rates are briefly down again at near historic lows, the clock is ticking. Luckily, one of the most valuable tools in mortgage shopping gets results in three minutes. More and more homeowners are using the free service Lendgo to see their best options and thinking of themselves as being in a race with inflation and a forecasted 2022 rate hike. Lowering the payment on your mortgage especially helps when the cost of living is going up.

SOURCE Lendgo