UPDATED! Please go here for updated mortgage rate trend charts (updated through May 2011)
“We’ve got to refinance NOW, rates are going up!”
“If we don’t buy now, we may not be able to get a good rate!”
I hear comments like this all the time.
Chasing mortgage rates will drive you bonkers. Yes, the rates for 30 year fixed rate mortgages are inching up. But keep this in mind… they are coming up from historical lows. Today’s rates are some of the lowest ever. If you concern yourself too much about locking into the lowest rate you’ll ever see in your lifetime, then you’ll never get anything done.The chart below shows the rate of a 30 year fixed mortgage since 1971. Note where we are today compared to the other 35 years this chart reflects.
Is now a good time to convert that ARM to a fixed rate mortgage? Maybe. Maybe not. Rate isn’t the only factor to consider in a refi. How long you plan to live in your home, closing costs, your personal and professional situation, all this and more should be considered. Consult a loan officer, CPA and real estate professional in order to consider ALL your options. Rates are important, but they aren’t everything.