“Yes, the rate is a factor – I’m not discounting that,” she said. “But I just want people to understand and look at the bigger picture, look at all the options that are out there. It’s the same thing for people that cling to their 2.87% or 2.38% rate on their house, and then they’ve got [massive] consumer debt.
“I understand the interest, all those kinds of things – but let’s talk cashflow, too. It doesn’t always mean that you need to refinance, doesn’t mean that the cashout refinance is the right thing. But I want people to look at the bigger picture and all the options on the table versus thinking about everything in its own silo.”
Huge rate drops in the year ahead? Don’t bet on it
The huge jump in mortgage rates after the pandemic pushed many would-be buyers to the sidelines as hopeful borrowers contended with a sudden big increase in their potential monthly payments.
But those spikes are a thing of the past, and the market has settled into a degree of normality with Fannie Mae’s latest mortgage rate forecast indicating rates are likely to see at best a mild drop this year.
The government-sponsored enterprise (GSE) said this week that it expects the 30-year average to end this year at 6.5% before dropping to 6.1% by the end of next year.