While the financial impact of the 2008 economic recession is, for the most part, behind us, there are now fears that the U.S. economy could be heading into another rough ride. And, while interest rates will oftentimes rise in response to increasing inflation, as a recession is just getting underway, interest rates – including those for home mortgages – will typically go down.
This, in turn, could give you the opportunity to move forward with the purchase of a new home, or alternatively, to refinance your current mortgage in order to pay off other debts, lower your monthly payment – or in some cases, to accomplish both!
In fact, with recession fears firmly in place, it has recently been reported that mortgage application volume has risen significantly, by nearly 22% during the first week of August alone. Likewise, weekly mortgage refinances spiked 37% during that same time period. This figure is nearly three times higher than just one year ago.
For the year 2019, home mortgage rates have dropped, on average, by .80%. So, locking into a new mortgage could lower your monthly payment significantly – particularly when you’re considering a loan that will last for 15 or 30 years.
Incidentally, a possible upcoming recession could cause home prices to decrease – particularly if the Federal Reserve continues to raise interest rates down the road. So, there could still be plenty of opportunity to find a home that you love and that fits nicely into your housing budget.
If you’re looking for the best mortgage rate to purchase or refinance a home, we should talk. At Galaxy Mortgage, we can match you up with mortgages from a wide range of lenders – and because of that, even if your credit isn’t perfect, you could still be able to qualify for a loan.
So, if you’re ready to move your home buying or refinancing process forward, give us a call and we’ll get you on your way.