Share this article!

The Federal Reserve recently announced that it plans in the next few months to hike interest rates and ease up on buying bonds, measures it put in place to prop up the economy during the pandemic. That could mean that the days of historically low mortgage rates — below 3% on the popular 30-year fixed loan — are numbered.

There are already signs of rates creeping up. Mortgage buyer Freddie Mac reported Thursday that the average rate for a 30-year mortgage rose to 3.05% from 2.99% last week.

So, does that mean you should rush out and refinance your mortgage by the end of the year?

First, let’s look at why rates fell so much this year, fueling the refinancing craze.