If you’re shopping for a home, you’ve probably noticed how dynamic mortgage rates are—changing daily, often following moves in the financial markets. A change of just one decimal point might not seem like a big deal, but it could end up costing you—or saving you—thousands of dollars.
Mortgage rates are complex and vary by lender, location, and product. Think of them like gas prices. You see them posted at gas stations everywhere, and if you pay close attention you start to notice that the prices vary by location, brand, and product.
But unlike filling up at the pump, the actual rate you get also depends on your financial profile and the specific property and terms of purchase.
Now that spring home search and buying activity are heating up, mortgage rates are heading higher. But it’s not going to be a straight upward journey—rates are likely to move around quite a bit this year.
The financial markets are reacting to monetary easing (what central banks do to stimulate economic activity) in Europe and Asia, while the U.S. prepares for expected rate increases by the Federal Reserve. However, no one knows exactly what the Fed will do.
This uncertainty will probably not only drive rates up but also back them down occasionally. That means it will really pay for you to keep track of what rates are doingbefore you lock in an interest rate on your mortgage. Read full article here.