May 24, 2021
One of the side effects of the COVID-19 pandemic has been an increased demand for real estate, particularly in the suburbs of major cities. Due to the increasing number of individuals who strictly work from home, we have experienced an extremely low interest rate environment. Interest rates have not been this low since after the 2008 “Recession” and as we posted previously, the Federal Reserve has stated that they will not increase interest rates until at least the end of 2022. While mortgage rates are not exactly the same as the federal interest rate, mortgage rates have not been this low in almost 10 years. Many home buyers have been frustrated by increased demand, resulting in many cash offers and bids thousands of dollars over asking price, but for current homeowners, low mortgage rates present a unique opportunity. For certain homeowners, now may be the time to consider refinancing at a lower rate. If this is something you have thought about, it may be an opportunity to capture a lower rate and reduce your monthly mortgage payment. As demand for real estate continues to increase, these low rates will not last forever, so act now! To learn more and discuss if refinancing may be an option for you, reach out to us today!
Carol Dixon, CFP® & Kevin DeRosa, CRPC®