Part 4/11:
While some believe waiting for further rate drops could be beneficial, experts caution that waiting might result in losing substantial savings. Since rates are predicted to trend downward, the opportunity cost involves foregoing immediate monthly savings—making a strong case for refinancing sooner rather than later.
The Resurgence of Adjustable-Rate Mortgages (ARMs)
A notable development in the mortgage sector is the resurgence of adjustable-rate mortgages (ARMs). Formerly sidelined after the 2008 financial crisis due to their association with risky lending practices, ARMs are now gaining popularity. This shift is largely due to market dynamics, including an inverted yield curve and recent Fed rate cuts.