Mortgage applications have risen despite higher interest rates due to a complicated set of factors. Refinancing has dropped, while home purchase applications have stayed strong, suggesting demand for housing remains high. However, experts wonder how much higher rates can go before demand is crushed. Housing prices have remained stable due to a lack of available homes for sale. Future interest rates are uncertain, but predictions range from 8% to 5%.
If you locked in a high mortgage rate in recent years, keep an eye out for interest rate cuts from the Federal Reserve. This could be an opportunity to refinance and save on your monthly mortgage payments. However, it's important to consider the closing costs associated with refinancing and compare them to your potential savings. If you bought your home with an FHA loan, you may also consider refinancing to eliminate the mortgage insurance premium.
President Biden announced a revised plan to forgive student loans, which will benefit tens of millions of Americans. This plan is narrower than his original effort, but it targets specific borrowers with financial hardship or those who have been in repayment for a long time. The revised plan aims to forgive up to $20,000 of unpaid interest for borrowers and could erase or reduce balances for many. Biden hopes this effort will survive legal challenges and help address the burden of student debt in the country.
