The kids are headed back to school, but homebuyers are still in timeout waiting for mortgage rates and home prices to pull back.
Last week’s rates climbed steadily higher, topping out at 5.60% on Friday. Two new reports on home sales this week might reveal where things are headed. If you’re a serious homebuyer, make sure you’re pre-approved, stay in close contact with your lender, and get ready to lock next time rates dip.
Here are this week’s mortgage news makers:
Tuesday:
New home sales
Wednesday
Pending home sales index
How to compete in bidding wars
All-cash offers have exploded in popularity over the past couple of years.
In 2021, 32% of housing was paid for without a mortgage. So, how can borrowers compete with cash buyers? Several lenders have stepped up to help with new pre-approval products that are as good as cash. Qualifying homebuyers can now get their credit, income and assets digitally verified and instantly go toe-to-toe with all-cash. It’s a great alternative if you don’t have an extra $500K-$800K lying around.
First-time homebuyers guide: Part 6
This step is where you get down to business regarding your home loan’s monthly rate, payment and term. Are you looking for the lowest interest rate, lowest monthly payment, or the shortest loan term?
Before you answer, there are two other questions to consider. What can you spend each month, factoring in the mortgage payment itself, plus assessments, insurance and taxes? And how long you plan to live in the property? Answering those two will help guide you on making the right loan choices.
Applicant subject to credit and underwriting approval. Not all applicants will be approved for financing. Receipt of application does not represent an approval for financing or interest rate guarantee. Restrictions may 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.
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.
John Kistner is Guaranteed Rate’s Market Analyst. Market Updates are designed to provide readers with a high-level yet insightful view of how economic news, events and trends affect mortgage rates and the homebuying process.