What’s the impact of consumer confidence on mortgage rates?

All the recession talk has consumers pulling back. It’s especially evident in the housing market where consumer confidence has dropped to the lowest levels since 2011.

Surging mortgage rates are the top reason for the growing pessimism. Eventually this could lead to good news down the road as demand lessens. Home prices and mortgage rates could start to drift down, and bring consumer confidence back up.

Has the most expensive part of a home changed?

Do you care to make a guess? Typically, the most expensive parts of any new construction are: framing, the foundation, plumbing, and exterior and interior finishing.

For example, the average cost to frame a 2,000 square foot, single-level home can range between $15,000 and $30,000. Now that lumber prices are easing, hopefully this cost will ease as well.

Is it possible to save on a mortgage in the current climate?

A lower interest rate isn’t the only way to save on your mortgage. Here are some simple things you can do starting today:

• Make one extra mortgage payment at some point during the year.
  
• See if your lender offers biweekly mortgage payments. Twelve months-worth of biweekly payments is the equivalent of making thirteen monthly payments in one year.
  
• Cut your Private Mortgage Insurance by paying extra principle each month to where you have 20% equity in your home. This is a sure bet for lowering your mortgage payment by a couple hundred dollars a month.
  
  
  

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All information provided in this publication is for informational and educational purposes only, and in no way is any of the content contained herein to be construed as financial, investment, or legal advice or instruction. Guaranteed Rate does not guarantee the quality, accuracy, completeness or timelines of the information in this publication. While efforts are made to verify the information provided, the information should not be assumed to be error-free. Some information in the publication may have been provided by third parties and has not necessarily been verified by Guaranteed Rate. Guaranteed Rate its affiliates and subsidiaries do not assume any liability for the information contained herein, be it direct, indirect, consequential, special, or exemplary, or other damages whatsoever and howsoever caused, arising out of or in connection with the use of this publication or in reliance on the information, including any personal or pecuniary loss, whether the action is in contract, tort (including negligence) or other tortious action. 

Savings, if any, vary based on consumer’s credit profile, interest rate availability, and other factors. Contact Guaranteed Rate for current rates. Restrictions apply.

All information provided in this publication is for informational and educational purposes only, and in no way is any of the content contained herein to be construed as financial, investment, or legal advice or instruction. Guaranteed Rate does not guarantee the quality, accuracy, completeness or timelines of the information in this publication. While efforts are made to verify the information provided, the information should not be assumed to be error-free. Some information in the publication may have been provided by third parties and has not necessarily been verified by Guaranteed Rate. Guaranteed Rate its affiliates and subsidiaries do not assume any liability for the information contained herein, be it direct, indirect, consequential, special, or exemplary, or other damages whatsoever and howsoever caused, arising out of or in connection with the use of this publication or in reliance on the information, including any personal or pecuniary loss, whether the action is in contract, tort (including negligence) or other tortious action.