More data has been released into the decision mix for consumers who are weighing whether home refinancing makes sense for them now that interest rates appear to be coming off near-record lows.
As interest rates seem to be poised in the medium term (see our previous article on interest rate trends), now comes news that overall home sales are beginning to soften – due, in part, to a rise in interest rates and stricter mortgage lending rules.
The Financial Post cites new numbers from the Canadian Real Estate Association (CREA) that now predicts a 1.2% drop in 2010 sales over the 2009 results. The ever-optimistic CREA had previously predicted a whopping 5.5% increase in sales for 2010.
CREA lowered its 2010 home sales forecast citing a market that “had exhausted pent-up demand that built up during the recession. It also cited rising interest rates as “making consumers more cautious.”
Be that as it may, interest rates remain at near-record lows. Five-year fixed rate mortgages – the most popular length of fixed-rate mortgages – can still be had for at or under 4%. For homeowners who are leery of rising interest rates, it is still an opportune time to refinance from a variable to fixed-rate mortgage and lock in the benefits of interest rates that were brought to near-historic low levels during the past recession.
A trusted mortgage broker can help homeowners weighing a home refinancing decision to make the proper choice, and find the mortgage product, that is best for their particular circumstances.
