Mortgage interest rates hit their lowest point in about a month this week, Mortgage News Daily reports. That could be welcome sign for borrowers looking to enter the housing market as the busy summer homebuying season warms up.
Rates on a 30-year fixed-rate mortgage dropped to 6.56% to start the week, and mortgage interest rates on a 15-year fixed-rate mortgage sunk to 6.12%, the report said.*
A drop in rates, even just a little bit of movement, could save borrowers thousands of dollars over the life of their loans.
Are you ready to start the loans process? Apply now and learn what kind of rate you could qualify for!
Did mortgage rates fall this week?
In its assessment of recent rate movement, Mortgage News Daily suggests mid-May was about the last time rates were this low. In fact, rates were about 12 basis points higher just a week ago, an indication that they are on a clear downward trend.
It might be early to suggest rates will stay this low, but timing looks good for buyers who plan to purchase a home, refinance or tap into their home equity while rates seem to be dropping.
What has caused mortgage rates to cool off?
It’s difficult to point to a single factor for why rates might be heading downward, but signals in the overall economy and recent developments in geopolitical news can often have an effect.
Reports of a potential peace agreement between the U.S. and Iran earlier this week helped to bouy global markets as fear of consumer and energy prices begin to subside.
And reports of more homes being listed for sale in markets across the nation could also help to bring down rates as buyers hit the pavement to look for deals.
What do dropping rates mean for homebuyers and homeowners?
A cooldown of rates just when the traditional summer homebuying season heats up could mean significant savings for homebuyers. A change of even a few points could save buyers thousands in mortgage interest payments over the life of their home loans.**
You can see for yourself just how much you could save when rates change by plugging your numbers into a mortgage calculator that will show you what your payments could be.
For homeowners looking to refinance to save money on their monthly mortgage payments, a dip in rates is a good time to learn how much a change in rates could put back into your pocket.
If you own a home and want to leverage some of the equity you’ve built up in your home for cash that you can use for renovations and other expenses, see what you can borrow with a home equity line of credit (HELOC).
A HELOC can be a great way to tap into your home’s value to get some things done that you might have been putting off. HELOC rates are often lower than a credit card, and some improvements might even be tax-deductible.***
What’s coming up on the financial calendar in the next few weeks?
The National Association of Realtors (NAR) is expected this week to release figures for homes for sale in May. If April numbers were any indication, the number of homes for sale is nearing a five-year high.
More homes on the market is a good sign for potential buyers as competition can often mean more deals to be had. Summer is usually a busy time for home sales, and with a drop in rates, it could be a great time for first-time homebuyers as well as seasoned homeowners to take advantage of the timing.
The Federal Reserve is expected to meet next week for one of its eight sessions this year. The Fed has influence on many markets, and its recommendations on interest rates can affect the direction of mortgage interest rates.
The Fed will meet for the first time with a new chairman recently appointed by President Donald Trump. Most Fed watchers expect the board to keep interest rates about where they are, but that doesn’t necessarily mean mortgage rates will stay the same as more influences mortgage rates than just the Fed recommendations.
How can I start a new mortgage, refinance or HELOC?
A key first step toward getting a mortgage or refinance is pre-approval. Your lender will review your financial information and determine how much you could borrow.
Pre-approval lets sellers know you are a serious buyer, and since you know how much you can borrow, you’ll be able to shop for homes in your price range.
To get started on your home purchase or refinance, apply today!
If you’re looking for funds for renovation costs or other expenses, a HELOC can get you cash based on the value of your home in as little as five days. Rate’s HELOC allows flexibility in that you only have to borrow what you need.
The application takes about 10 minutes to complete, and professional Loan Officer can guide you through the HELOC process once you apply.
Begin your HELOC application today!
* Sample rates are national averages provided for illustrative purposes only and are not advertised rates. Contact Rate for more information and up to date rates.
**Savings, if any, vary based on the consumer’s credit profile, interest rate availability, and other factors. Contact Rate for current rates. Restrictions apply.
***Rate does not provide tax advice. The consumer should always consult a tax advisor for information regarding the deductibility of interest and other charges in their particular situation.
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. Refinancing your mortgage may increase costs over the term of your loan. Restrictions may apply.
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