The following information is provided by Bert Karrer with Regions Mortgage.
With rates currently this low, below 5% for a 30 year fixed, it’s important to understand that they won’t last. If you’re prepared to either buy or refinance, don’t balk at today’s low rates thinking that they may fall significantly lower.
With the Fed’s downward pressure on rates fading, conforming rates may not be this low again for a long time.
While I don’t foresee an extraordinary increase in rates anytime soon, upward pressure is just around the corner. Also, it’s important to note that even if rates do increase by half a percentage point, for example, it doesn’t mean that affordability is out of reach.
The best advice we can give is to always be prepared. If you’re interested in refinancing, have a rate in mind so if rates are trending downward, you’ll be able to lock in quickly and save. Waiting for rates to fall “just a little bit lower” can get you into trouble if rates decide to shoot upwards.