Mortgage rates trend upwards after market moves down
Mortgage rates have finally beat the June highs with the most recent 30-year fixed coming in at 6.30%*. Tuesday’s surprise inflation numbers shocked the bond market sending rates higher.
Before Tuesday, a number of economists were banking on a 75-basis points increase by the Federal Reserve next week. There’s been increased chatter of a possible 100-basis points increase to try and throttle back inflation.
Either way, definitely consider locking in a mortgage rate before next week. You can always refinance to a lower your rate in the future if rates come down.
Ever thought about buying mortgage points?
With mortgage rates now in the 6-percent range, you might want to consider buying mortgage points to lower your rate. Typically each point costs 1% of the loan and lowers your mortgage rate by .25%.
For example, if you wanted to borrow $400,000 at 6%, but you bought a mortgage point, you’d pay an extra $4,000 at closing and your mortgage rate would be lowered to 5.75%.
That means you’d paying a lower monthly mortgage payment. Make sure you run the numbers to see how long it will take for your monthly savings to cover the cost of the mortgage point. If you’re planning on staying in your home for a while, it might make a lot of financial sense. If you know you’re moving in a couple years, maybe not.
First-time homebuyers guide: part 14
Going the digital mortgage route will make your homebuying experience much easier. Instead of scanning, faxing and sending private information over email, a digital mortgage uses cloud-based technology to make things paperless. A document-sharing service provides your loan officer and their team with the required documents. All done quickly and easily in a safe, secure environment. The whole process maximizes efficiency and moves things along at a must faster pace. Discover the difference a digital mortgage can make for yourself.
Pre-Approval
in 10 minutes?
in under 10 minutes. Grab a few important documents to get started.
- Tax Returns
- Copies of W-2s (or 1099s for independent contractors,
freelancers and the self-employed) - A payroll stub
- A bank statement
- Loan obligation info (student loans,
auto loans and credit cards)
* National average rates as of 9/1 are not advertised rates from Guaranteed Rate and are used for informational purposes only.
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.
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.