The Sales Pitch for an 8% Mortgage: Buy Now, Refinance Later—for Free

Lenders have a proposition for home buyers who can’t stomach an 8% mortgage rate: Buy now, and refinance later for free.

Lenders are making these offers because the market for mortgages cratered as the Federal Reserve raised interest rates to two-decade highs to tame inflation. ​ The average rate on a 30-year fixed-rate mortgage is 7.79%, according to Freddie Mac.

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