Average mortgage rates have made the decision to refinance very hard for some home owners. Getting the best rate possible is important, but with rates trending higher, it might not even be worth it to refinance.
Average mortgage rates have been quite volatile over the last few weeks. There have been single days in which rates changed as much as .75%. Unfortunately, many of these days have been to the upside. Now that the 10 year treasury rate has pulled back from 4% and has started to stabilize it has done the same thing for home loan rates. The problem that we are now seeing is that the sentiment of current home owner is fear.
Home owners have seen mortgage rates all over the map and they are very reluctant to go through with the application process they see no consistency in rates. Unfortunately, this is going to make the lending industry even harder. Many of the applications that were being reviewed when mortgage rates were at all time lows are now being re-reviewed because rates shot up so quickly. If these applications cannot find funding, we are going to see a traffic jam of applications waiting to be reviewed.
If you were considering going through the refinance process it would be advisable to get a very up to date appraisal and make sure that you are going to save enough money to pay the closing costs and administrative fees. If you are not going to save a full percentage point on your current mortgage, it might not be worth it to go through the refinance process, especially now. Lenders are doing everything they can to make money, as the economy is horrible, so please realize that even if you are quoted at a low rate, you will still have to pay closing costs.
