Mortgage Lenders are pulling their best deals as hopes of deeper cuts in mortgage interest rates fade. Homeowners wanting to refinance their mortgages should act quickly because interest rates on fixed mortgage loans are likely to rise soon. When interest rates were cut this month, many were predicting a further drop before the end of the year. As a result, the interest rates on fixed rate mortgage loans were expected to remain at the current low levels and even drop over the coming months. This now seems less likely.
A number of mortgage lenders have pulled their fixed rate deals over past weeks as the chances of another rate cut later this year has diminished. A recent survey showed a jump in inflation during the month of July, up from June. The pressure is on lenders to increase the cost of their fixed rate deals, so now is a good time to lock in a low rate.
If you are coming to the end of your existing deal and are looking to refinance to a fixed interest rate, apply now. It takes an average of about two months to refinance a mortgage. However, if you wait too long to see if rates drop further, you could lose out.
My name is Rob Regehr and I’m a personal finance writer with a chip on my shoulder for banks and brokers that take advantage of my friends and neighbors.
