How to Track Mortgage Rates in 2024
Buying a home in 2024 isn’t just about finding the perfect place. It’s about understanding the dynamic world of mortgage rates, where even slight fluctuations can impact your wallet. In this post we hope to empower with solid information so you can make informed decisions every step along the way.
Steady Sail with Potential Dips
As of January 25, 2024, Freddie Mac released the results of its Primary Mortgage Market Survey® (PMMS®), showing the 30-year fixed-rate mortgage (FRM) averaged 6.69 percent, up from last week when it averaged 6.6 percent. A year ago at this time, the 30-year FRM averaged 6.13 percent.
Experts predict a gradual decline in 2024, potentially hitting sub-6% by year-end. But economic factors can change course, making informed tracking crucial.
Every Rate Move Counts
Minor rate changes can significantly impact your monthly payments and total loan cost. A 0.5% difference on a 30-year, $300,000 loan translates to about $125 higher monthly payments and over $45,000 additional interest paid over the loan term. Understanding and acting on rate fluctuations can unlock substantial savings, bringing your dream home closer within reach.
Your Arsenal for Rate Tracking
Stay ahead of the curve with these tools:
- Embrace Home Loans® Weekly Updates: Every Thursday, we deliver comprehensive market insights and the latest trends, keeping you informed and empowered.
- Mobile Apps: Apps like Freddie Mac’s My Home and Loan Sense offer on-the-go updates, personalized quotes, and pre-qualification tools.
- Direct Connection: Seek personalized counsel from a trusted mortgage lender like Embrace. We can provide tailored quotes and guidance based on your unique financial situation.
Pro Tips for Savvy Borrowers
Beyond monitoring rates, consider these strategies to maximize your advantage:
- Comparative Shopping: Obtain quotes from multiple lenders, including Embrace, to ensure you secure the most competitive offer. Leverage your credit score and financial history to negotiate favorable terms.
- Explore Options: While the 30-year fixed-rate mortgage is popular, consider alternative loan types. Shorter terms may offer lower rates, while ARMs can be suitable for short-term financing needs.
- Factor in Closing Costs: Closing costs can add up. Research average fees in your area and factor them into your budget estimations.
- Stay Informed: Keep up with economic news and events that influence mortgage rates, such as Federal Reserve policy decisions and inflation reports. Embrace’s weekly updates are a valuable resource for staying on top of the market.
- Patience is Key: Finding the absolute lowest rate might not always be possible. Sometimes, waiting for a slight dip can save you money, but excessive caution can lead to missed opportunities in a dynamic market.
Additional Resources for You
- Federal Housing Administration (FHA): Offers government-backed loans with lower down payment requirements and more flexible credit score criteria.
- U.S. Department of Housing and Urban Development (HUD): Provides educational materials and resources for first-time homebuyers.
- National Fair Housing Alliance (NFHA): Works to prevent housing discrimination and promotes fair lending practices.
Unlock Your Dream Home with Confidence
Buying a home in 2024 shouldn’t be a solitary trek through a labyrinth of financial information. Embrace Home Loans is your dedicated companion, illuminating the path with weekly updates, personalized guidance, and a steadfast commitment to finding the perfect loan for your needs.
With the knowledge and tools you’ve acquired here, you can confidently explore the nuances of mortgage rates, make informed decisions, and unlock your dream home with complete financial control.