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.