What Borrowers Need to Know About the Uptick in Mortgage Rates
When we recorded our 2021 Market Outlook at the beginning of the year, Proper Rate executive vice president of sales, Dan Moran, talked about how national average mortgage rates were sitting at record lows, with the rate on the 30-year fixed rate averaging 2.65%. Fast forward a couple of months, and that national average rate has jumped to 3.18%*, its highest level since last summer.
While rates in the 3% range are still extremely low by historical standards, the recent increase is a reminder of how quickly the rate environment can change, and why potential buyers as well as homeowners looking to refinance may have more incentive to act fast.
“There are a number of factors that drive mortgage rates up and down, so it’s important for borrowers to lock in their desired rate as quickly as possible,” Moran said, adding that a pre-approval is an essential part of the process.
He also noted that applicants should be focused on their payment just as much as their rate.
“In most instances, rates become a psychological trigger in that people want to get the lowest rate possible, but the actual amount of the monthly payment also greatly impacts loan qualification,” said Moran. “If rates are up or down a half a percent it could decrease or increase the loan amount a borrower could obtain, so it’s something to keep an eye on with your mortgage lender.”
Whether you’re planning to obtain a mortgage for an upcoming home purchase or thinking about refinancing, reach out to a Proper Rate loan officer. Meanwhile, be sure to contact an @properties agent for more information about your local real estate market.**
*Source: Freddie Mac Primary Mortgage Market Survey®. Average interest rate on 30-year fixed-rate conforming mortgage with average of 0.7 fees/points.
**Proper Rate, LLC and At World Properties, LLC share common ownership, because of this relationship, this referral may provide Proper Rate, LLC a financial and/or other benefit. You are not required to use the services of At World Properties, LLC or Proper Rate, LLC.
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, contact Proper Rate for current rates and for more information.
Proper Rate, LLC; NMLS #1901699; For licensing information visit nmlsconsumeraccess.org. Equal Housing Lender. Conditions may apply • AZ: One South Church Ave, Suite 1200, Office 1248, Tucson, Arizona 85701, Mortgage Banker License #1010230 • CA: Licensed by the Department of Financial Protection and Innovation under the California Residential Mortgage Lending Act • CO: Regulated by the Division of Real Estate, 866-755-0679 • OH: MB 804550, 1800 W. Larchmont Ave., Suite 301, Chicago, IL 60613 • TX: 1800 W. Larchmont Ave., Suite 301, Chicago, IL 60613, 866-755-0679