As mortgage rates continue to rise, it’s more important than ever to stay up to date with the latest industry news. Let’s cut to the chase and cover the events of the past week that continue to affect the mortgage market.
Last week, mortgage rates continued to rise in line with rising inflation and the Federal Reserve’s interest rate announcement (more details below). Freddie Mac reported rate increases at all levels for the week ending Thursday, March 31; and like many experts, they predict this upward trend will continue.
The average lender is now offering well over 4.50% for 30-year fixed rate loans, which should signal potential borrowers to seek funding now. If this pace continues, we could see average mortgage rates for 30-year options close to 5% over the next month.
Our forecast: Mortgage rates will continue to rise. The pace at which they do so will likely be dictated by the Fed’s six remaining meetings this year, which will likely be accompanied by announcements of further interest rate hikes. If you’re looking for something new, we can’t stress enough the importance of finance your home now. Our team of dedicated mortgage bankers are ready and available to help. Find one now Where Contact us with all questions.
Older, but still important news
Let’s review some older industry news that has affected buyers since the start of this year.
- For the first time since 2018, the Federal Reserve announced that interest rates will increase by 0.25 percentage point — which means mortgage rates will also rise — and future increases will happen over the rest of this year at every Fed meeting. For potential buyers around the world, this should be considered a red flag and a sign to follow through on buying a home as soon as possible.
- Purchase requests continue to outpace refinance requests. And with the Fed putting upward pressure on mortgage rates for the rest of the year, refinancing opportunities will diminish accordingly. When rates were at historic lows at the start of the pandemic, refinancing was a hugely attractive option for homeowners around the world. Now that they are back on the upside, however, we are already seeing the opposite as we return to a high demand buying market. If you are looking to refinance, act quickly and contact a loan officer from Total Mortgage now.
- In early February, the Federal Housing Finance Agency (FHFA) lifted its restrictions on borrowers with self-employment income. These were initially put in place in response to the pandemic but have since been removed, providing borrowers with greater opportunities in an already competitive market. The same credit and income requirements may apply, but home financing is now generally more accessible to the self-employed.
To learn more about any of these recent developments, contact your Total Mortgage Loan Officer today.
When it comes to financing a home, it’s time to act now. Refinancing possibilities are already diminishing and the window to secure long-term savings with a lower rate is starting to close. The sooner buyers act and lock in their rates, the more they will save in the long run. contact us now with all your questions and enjoy the rest of your week!
Filed Under: News
Tagged With: mortgage industry news, mortgage monday, mortgage rates, total mortgage