Doug Hogan of Allegiance Mortgage in Chattanooga said local property values have continued to increase and mortgate refinance transactions are up.
He commented after the Mortgage Bankers Association said U.S. mortgage applications rose for a third straight week as 30-year fixed rate mortgages fell to a national average of 6.38 percent from their four year high of 6.86 percent touched in mid-June.
Mr. Hogan said, “Homeowners with mortgages about to adjust will be well advised to take advantage of today’s rates.
“In 2003 and 2004, many homeowners opted for adjustable rate mortgages that were fixed for two or three years. At the time, the spread between short-term and long-term rates made such mortgages extremely attractive. These mortgages are now coming due for adjustment. The new adjusted rate is often much higher than what fixed rates are today and it only makes sense that homeowners examine whether or not it would be in their interest to refinance and fix their payments.”
Property values in the Chattanooga area have continued to increase despite national trends indicating a softening market, he said.
Mr. Hogan stated, “We have not seen the declines experienced in the Northeast or the West. As a result, many homeowners in this area have built up a significant amount of equity that they may want to tap into. With this increase in equity and the attraction of lower fixed rates, homeowners in Chattanooga and North Georgia will be well advised to consider refinancing now.
"No one can predict how long the Federal Reserve Board will continue its current 'pause' in interest rate hikes, but almost all economists agree that its policy of steady increases has not come to an end.
“If my mortgage were about to adjust, I would jump at today’s fixed rates and not gamble with what rates might be six months or a year from now.”