By Sabrina Karl

Mortgage rates are notoriously difficult to forecast. There simply is no mortgage market crystal ball, because the factors that influence rates are numerous, complex and interconnected.

That said, rates have started to rise from recent lows and most experts anticipate they will climb further, leaving the historic lows of 2021 in the rearview.

That means it’s time to strike while the iron is hot, or at least still warm, if you haven’t refinanced in the last two years. If rates continue rising and remain elevated, the window for cost-effective refinancings could soon close.

For perspective, let’s look at Freddie Mac’s weekly mortgage rate averages. At the start of 2019, the 30-year fixed-rate average stood at roughly 4.5%. It sank steadily through September 2019, until it touched about 3.5%, then rose up by year-end to approximately 3.75%.

Then came the pandemic. With the exception of a spike the week of March 16, 2020, when the U.S. entered full lockdown mode, rates cratered week after week until the start of this year. By then, the 30-year average had dropped to an all-time historical low of 2.65%.

Rates have risen and fallen since then, reaching a 2021 peak of 3.18% in late March, but later dropping to 2.77% in early August. Since then, they’ve mostly increased, bringing last week’s average to 2.99%.

Rates in the 3% ballpark are still historically low. So while we may never again see the Covid-triggered low of 2.65%, there is still great opportunity for many homeowners to save money with a refinance if your rate is in the mid 3% range or higher.

If you’ve hesitated to refinance because you think the savings won’t be that great or the costs too high, you may be surprised to learn how inexpensively you can refinance if you investigate multiple options.