Higher Mortgage Rates Pressure Buyers // Today’s Mortgage News – Growella

Mortgage rates are spiking in a way not seen since eight years ago This is Dan on your inside team at Growella with today’s Mortgage Minute-and-a-Half

It’s been bad few days for mortgage rates, and tough couple of weeks Since mid-December, thirty-year mortgage rates are up close to fifty basis points, or zero-point-five percentage points The jump has knocked close to six percent off a home buyer’s maximum purchase price, which affects the price ranges in which buyers can shop But the question is why are mortgage rates rising, and the answer’s an easy one Those defensive measures Wall Street took throughout most of last year? None have turned out as bad as expected

Brexit never crashed the system; trade wars were uneventful; and, here at home, taxpayer cash is being spent at a very high clip Investors view mortgage bonds as safe and there’s less need to be holding safe assets given today’s global climate Mortgage rates are rising as a result Mortgage rates are higher still as compared to recent weeks Thirty-year fixed-rate mortgage rates for conforming loans are near four-and-a-quarter percent, FHA mortgage rates are close by at four-and-an-eighth, and VA and USDA mortgage rates are pushing four percent on average nationwide

Now, the mortgage rate you get from a lender will be slightly different depending on your credit score, and how you pay your closing costs Different loans get different rates, and as your closing costs increase, your mortgage rates go down Talk to two or more lenders about your loan and make sure to shop around For buyers of homes, today would be a smart time to re-pre-approve your loan to buy a home With mortgage rates up, your pre-approval might no longer be valid

A mortgage pre-approval is different from a pre-qualification, which is a guesswork piece of paper that states you’re eligible to buy a home A pre-approval by contrast is more stoneclad Pre-approvals take your income, your credit score, your history, and your purchase range into account to say “Yes, you can actually buy and get approved for a home at this particular amount” With mortgage rates up a half-percentage point since mid-December, though, it’s a good time to re-check whether that pre-approval is still alright to go Talk to your lender for a pre-approval update or click the link in the description to get connected to a loan officer who can help

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