3 Reasons to Refinance Before the Weather Improves

These solutions can help you secure a mortgage for your house.

While mortgage rates went up last year, they held quite steady throughout early 2014. That could change as the weather starts to warm up. Here are three factors refinancing could get harder in the months ahead.

1. Better weather could restore the economy. Growth looks to have sputtered, but many economists think a specifically rough winter has been at least partially responsible. If they are right, more ideal weather can take a revival of growth– and the return of rising mortgage rates.

2. Mortgage-loan supply can get tighter. JPMorgan Chase, the nation’s second-largest mortgage lender, lately revealed 6,000 new layoffs from its mortgage department, on top of 11,000 such layoffs last year. That would leave the industry with less ability to handle an uptick in demand if refinancing and/or the housing market in general heats up later this year.

3. The problem in the Ukraine might be inflationary. If the circumstances get worse, it could restrict the flow of Russian oil and natural-gas exports. Restricting the supply of any commodity tends to have a global causal sequence in the form of higher prices. An upturn of inflation would be likely to push mortgage rates higher.

Can you get a low interest rate?

As things stood today, 30-year mortgage rates were still below 4.5 percent, and 15-year rates were below 3.375 percent (0 points). For anybody who could benefit by refinancing at those rates, it might be well worth braving the weather since rates may start to rise with the temperature as spring moves along.

If you’re in the Los Angeles region, call Ron Henderson now for a no-cost pre-qualification.

Ron Henderson GRI, RECS, CIAS
President/Broker
Multi Real Estate Services, Inc
ronh@mres.com
www.mres.com