Mortgage rates have fallen more aggressively than ever and they’ve been remarkably willing to set record after record. So is there any reason you shouldn’t wait for them to go even lower?

This is an age old question any time rates fall to long-term lows.  In the past, the answer has been pretty easy.  If rates had fallen more than 1.5% from their previous high over the course of several years, and if something obvious happened to push them just a bit lower, it was time to refi!

For example, the Fed’s policy shift (in favor of mortgages) in September 2012 and the Brexit vote in 2016 both pushed rates quickly lower.  Both were singular events with finite information, that allowed markets to react and move on.

Coronavirus has filled this role in a different way.  Like past events, it hit a market that had already seen rates fall significantly for more than a year.  Unlike past events, it’s vastly more complex with implications that are infinitely more uncertain.  It’s also very much ONGOING as opposed to finite.

The net effect has been an uncanny ability for rates to hit record low after record low with little apparent risk of a rebound.  In an environment like this, it makes sense that rates could go even lower, but only for so long.

Naturally, rates will have to stop setting new record lows at some point.  Unfortunately, it’s impossible to know exactly when that will be (or if it has already happened).  To reach Dan and Trinity Mortgage to learn more please phone 866-310-1112.