For much of last year, homeowners saw their home appreciation value continually increase despite the pandemic’s negative economic forces.
Now, home prices are up 10% higher than the previous year, representing the first double-digit leap to the home price index since 2013, according to CoreLogic.
Interest rates played a factor here. Last year, the real estate market took off and became a seller’s market as housing demand increased and interest rates fell lower. Growing housing demand only pushed home prices further up, increasing the equity for millions of homeowners across the nation.
Aspiring homeowners are encountering new affordability constraints due to short housing supply. Even with today’s super low rates, homebuyers may still face an uphill climb due to ever-growing home prices. For instance, some homes that were recently priced well under the median price saw their appreciation soar by 14%. As a result, home prices and home appreciation continue to move upward, creating additional hurdles to home buying.
As the market enters a new phase, interest rates to buy or refinance a home are slowly creeping upward. Today’s interest rates remain relatively low given how far they’ve already come. People are still doing their best to buy homes. And for a homeowner with newly accumulated equity, a refinance mortgage loan with a low interest rate is a great opportunity to get ahead.
Homeowners can lower their monthly mortgage payment or borrow money by leveraging their growing home equity through a refinance loan. At the same time, homeowners will enjoy a reduced interest rate for more potential savings in the tens of thousands of dollars over the life of the loan. Loan applicants can also remove their mortgage insurance requirement through a refinance loan.
To learn more about how today’s interest rates can help you save money or facilitate a cash-out refinance to increase your financial flexibility, please contact us to learn more about this exciting opportunity.