Millennium and General Z generation is a gambling a significant decrease in the mortgage rate, using weapons and re -financing. But this could be a “financial bomb”

Although mortgage rates reached 8 % in late 2023, they remain relatively high at about 6.5 %. But some members of the young generations continue to decrease the mortgage rates in the near future, even with real estate experts warning that it is “”Unrealistic”

In fact, new reconnaissance Among the 1,000 Americans by the San Francisco Mortgage Technology Truework Two -thirds of the younger home buyers appear in financial gambling in the hope of obtaining a significant decrease in the mortgage rate in the next three years. They take the ARMS mortgages at a lower rate or plan to re -financing in the future. Weapons usually start with a lower initial monthly payment, but the rate is seized periodically based on the market index, as well as a margin.

“These temporarily low rates led them to buy homes who may struggle to bear a fixed price, which leaves them financially and emotionally,” luck. “In an unconfirmed environment, it can become an absolute financial bomb.”

The problem of weapons and re -financing in today’s economy

While betting on weapons or future re -financing can help some homeowners storm the housing market soon, this does not always mean that it is the best long -term financial decision for all borrowers.

Sometimes, the arm requires re -financing to avoid a high rate, but market conditions may not be favorable, Phil Crescenzo Jr.Deputy Head of the southeastern division in Nation One Mortgage Corp. , He said luck.

He said: “The customer must accept any amendment according to the conditions of the mortgage, which creates uncertainty for the owner of the house.” Certainly, there are cases in which re -financing can be useful if the current mortgage rate is less than what was originally from the loan.

Melissa CohenRegional Vice President William Ravia, mortgage real estateHe added that homeowners who take an arm should be “always ready for the scenario of cases.”

Meanwhile, those who plan to re -financing in the future may feel disappointed to hear that economists and housing market experts. Do not expect a meaningful decrease Any time soon.

“There is no guarantee that the prices will decrease in the future,” said Cohen, who has more than 40 years of mortgage experience, said. luck. “We were hoping that mortgage rates would decrease for a while now, and they didn’t.”

Therefore, the millennial generation and General Z is likely to be very sticky if they are planning to use an arm or re -financing in the future, according to Truework.

Kabdebon said: “The banking is a decrease in the mortgage rate is risky because they are betting on something they cannot control,” Kabdebon said. “Real estate mortgages for buyers should not be a gamble, but the safe investment they do to improve their families’ lives.”

Will the mortgage rates decrease soon?

While the head of the Federal Reserve Jerome Powell signal Last week, it was open to lowering prices in September, and this does not mean that mortgage rates are estimated to decrease enough to make housing more affordable for Americans.

accident Zillow The study showed that the mortgage rate of 0 % will not flourish in the possibility of housing costs in many of the main American metro, and that economists and other housing market experts do not decrease significantly. plus, Mortgage rates have increased last fall Along with the treasury return for 10 years, even when the Federal Reserve began to reduce rates-the same date can restore this year.

While there is a “good opportunity to drop the mortgage rates in the future, Calcadonon is still there” does not tell us about the amount that will be the decline. “In addition, the ability to afford housing costs is also controlled through home prices, which is historically high, and wages still have not died in the price of the household prices.

“The real question is” How enough “is for people in weak financial positions? Calton’s request. “Are people betting on a 5 % handle? 4 % handle? 3 % handle feel comfortable?”

It will tell time, but the last memory of the sub -mortgage rates 3 % still makes today’s prices not available.

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