As mortgage rates continue to rise, it’s more important than ever to stay updated on the latest industry news. Let’s get right into it and cover last week’s happenings that are continuing to affect the mortgage market.
Rates Update
Last week, mortgage rates kept moving upward in accordance with rising inflation and the Federal Reserve’s interest rate announcement (more on that below). Freddie Mac reported rate increases across the board for the week ending Thursday, March 31; and like many experts, they predict that this rising trend will continue.
The average lender is now offering well over 4.50 percent for 30-year fixed-rate loans, which should signal prospective borrowers to pursue financing now. Should this pace continue, we could see the average mortgage rates for 30-year options near five percent within the next month.
Our forecast: mortgage rates will continue to rise. The pace at which they do so will likely be dictated by the Fed’s six remaining meetings this year, which will probably come with announcements of further interest rate spikes. If you’re in the market for something new, we can’t stress enough how important it is to finance your home now. Our team of dedicated mortgage bankers is ready and available to help. Find one now or contact us with any questions.
Older, but Still Important News
Let’s cover some older industry news that has affected buyers since the start of this year.
- For the first time since 2018, the Federal Reserve announced that interest rates will be rising by 0.25 percentage points – meaning mortgage rates will also rise – and that future increases will come over the rest of this year with each proceeding Fed meeting. To prospective buyers everywhere, this should be viewed as a red flag and a sign to follow through with a home purchase sooner rather than later.
- Purchase applications are continuing to overtake refinance applications. And with the Fed applying upward pressure on mortgage rates through the rest of this year, opportunities to refinance will decline accordingly. When rates were at historic lows during the early pandemic, refinancing was an extremely appealing option for homeowners everywhere. Now that they’re back on the rise, though, we’re already seeing the opposite as we return to a high-demand purchase market. If you’re looking to refinance, act quickly and contact a Total Mortgage loan officer now.
- At the start of February, the Federal Housing Finance Agency (FHFA) lifted its restrictions on borrowers with self-employment income. These were originally put in place in response to the pandemic but have since been removed, offering borrowers greater opportunities in an already competitive market. The same credit and income requirements may apply, but home financing is now generally more accessible for the self-employed.
To learn more about any of these recent developments, contact your Total Mortgage loan officer today.
In Closing
When it comes to financing a home, the time to act is now. The opportunity to refinance is already declining and the window to secure long-term savings with a lower rate is beginning to close. The sooner buyers act and lock in their rates, the more they’ll save in the long run. Contact us now with any questions and enjoy the rest of your week!
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Source: totalmortgage.com