Current Mortgage Rates and Where They are Going

Considering buying or refinancing a house is a very significant financial decision that has a significant impact on both short-term cash flow and long-term potential gains. When making this decision, it is important to consider many different factors, including current cash flows, the opportunity cost of each decision, current housing market conditions, and macroeconomic trends. Over the past year, the housing market has soared, broadly reaching new all-time highs. One contributing factor is very low mortgage rates. Low mortgage rates open the market for homeownership to individuals and families who may not have been able to afford a house at higher mortgage rates – this causes an increase in demand which, all else being equal, drives up the price of residential real estate. Ultra-low mortgage rates can also be employed to refinance an existing house, lowering monthly payments and freeing up household cash flows. 

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- Anthony Winkels is Managing Partner and Wealth Advisor at Fortis Wealth Management