Should you lock in a mortgage interest rate before the June Fed meeting?
Summary
The Federal Reserve is expected to keep interest rates steady at its June meeting. Mortgage rates have risen recently and are now averaging around 6.5% for 30-year loans. Locking in a mortgage rate before the meeting could protect borrowers from potentially higher rates afterward.Key Facts
- The Federal Reserve will likely keep rates unchanged on June 16-17.
- Current Fed rates range from 3.50% to 3.75%.
- Mortgage rates have increased this spring to about 6.5% for 30-year loans.
- Some borrowers can still find mortgage rates under 6% if they have good credit and shop carefully.
- Mortgage rates can rise even if the Fed does not hike rates, depending on lender reactions to Fed statements.
- Locking a mortgage rate now can help buyers start or continue home purchases or refinancing.
- Borrowers can later refinance or seek better rates if they lock in a higher rate now.
- Borrowers should consider their situation carefully, as locking rates may not benefit everyone.
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