Hesitant Refinancers May Miss their Chance

Although mortgage rates had been steadily decreasing for quite some time now, they may be on the rise again, much to the chagrin of homeowners that have been waiting for even lower rates before they refinance. Unfortunately for them, the opportunity may have passed.

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Some mortgage brokers have reported a dramatic increase in mortgage rates, as much as 1 percent on Wednesday, and the trend does not appear to be reversing any time soon. April featured record low mortgage rates, a phenomenon that may have come as quickly as it has gone.

Rebounding mortgage rates may be a consequence of the nation’s growing debt and the concern that government assets could lose some of their value. As mortgage rates continue to rise, both home buying and refinancing will slow down. This increase in mortgage rates is certainly not beneficial to economic recovery but the effects will not be cataclysmic, either.