By Olga P. Okaty, CFP®:
Following the U.S. Federal Reserve’s decision yesterday to keep interest rates steady, the Bank of Japan’s decision overnight not to add stimulus, and investors’ growing concerns regarding the impending Brexit vote next week, U.S. Treasury yields fell again today, reaching their lowest level in four years as investors’ appetite for risk waned. With the 10-year Treasury currently trading at its lowest level since August 2012, mortgage rates are also following suit – currently, the 15-year fixed and 30-year fixed rates are in the higher 2’s and mid-to-low 3’s, respectively.
If you are considering a refinancing or have refinanced at higher rates, we encourage you to contact your mortgage broker to discuss refinancing options and lock in rates at these low levels. Any outstanding home equity loans and lines of credit may be rolled into a new lower rate loan as well to produce additional savings. And those currently in the midst of a refinancing or purchase may likewise wish to recheck their rate for a possible adjustment down. While the mortgage approval and refinancing process can be time-consuming and elaborate, the resulting savings may be considerable and may provide an effective way to improve cash flow, increase goal funding, or pay down liabilities faster.
As always, please don’t hesitate to contact us with any questions or if we may be of assistance.