Mortgage interest rates fell again this week. Here’s how homebuyers should (and shouldn’t) respond to the news.
The recent trend of mortgage rates dropping doesn’t appear to be over.
Rates on a 30-year mortgage declined again this week, according to new data from FreddieMac. Averaging just 6.27% now, rates here are at their lowest level in around a month. While not quite as affordable as the 6.13% they hit before the Federal Reserve cut rates in September (a three-year low at the time), they’re heading back in the right direction for buyers eager to re-enter the market.
But that doesn’t mean buyers should rush into the process either, especially considering the unique climate they now find themselves in. While it’s always important to be strategic in the homebuying process, it’s arguably especially so now, with items like inflation, interest rate policy and domestic economic policies all playing a role. By making select moves (and avoiding others) now, buyers can better improve their chances of success. Below, we’ll break down two things to do and two others to avoid now that mortgage rates are heading back down again.
Start by seeing how low of a mortgage interest rate you could qualify for here.What homebuyers should (and shouldn’t) do now that mortgage rates just dropped again
To take advantage of this new affordability in the mortgage market, homebuyers should consider the following dos and don’ts now:Do: Get pre-approved
A mortgage pre-approval can go a long way. Not only will it let you know how large a loan lenders will and will not realistically approve you for, but it will also help you better tailor your home hunt.
