Clark Howard: Mortgage rates likely to rise in coming months

Mortgage rates are likely to rise in the coming months, according to WOKV’s Consumer Warrior Clark Howard.

He says rates likely won’t spike all at once, but the trend overall will be higher.

“That’s because there are more expectations built in of federal deficit spending and more inflationary pressures in the economy, which means that people that are lending money have to overcome their fears of inflation eroding what they’d earn, so they demand more interest,” says Howard.

Howard says if you have been looking to refinance your mortgage, you may want to act sooner, rather than later. He says an important of that includes shopping around.

“You want to play one lender against another, and, especially, do that with refinances. Because in a market that the rates may be putting a little bit of squeeze on your wallet in 2021, you want to do as much as you can to fight back for your wallet. And you do that, by shopping.” Howard says.

But even if you’re not ready to buy a home right away, you may still be able to catch a deal this year.

“... the likelihood is that rates will remain very, very favorable, but not at the incredibly low rates that we’ve had in recent months,” says Howard.

Get more consumer news and advice from Clark Howard in his latest on-demand podcasts.

Cox Media Group