3 mortgage interest rate mistakes to avoid this June
Summary
Mortgage interest rates may change in June due to upcoming economic reports and a Federal Reserve meeting. Borrowers should avoid three common mistakes to protect themselves when buying or refinancing a home: assuming a Fed rate pause won’t affect rates, expecting only usual factors to influence rates, and overlooking the importance of a good credit score.Key Facts
- Mortgage interest rates have risen about half a percentage point since mid-April.
- The Federal Reserve will meet on June 16, which can influence mortgage rates even if the Fed does not change its main interest rate.
- Mortgage rates can rise or fall due to many factors, including employment data, inflation, geopolitical tensions, and oil prices.
- Lenders set mortgage rates based on Fed guidance but can raise rates even if the Fed pauses rate changes.
- Locking in a mortgage interest rate now might benefit borrowers before rates potentially increase.
- A strong credit score helps borrowers qualify for better mortgage rates.
- Borrowers should check and improve their credit scores by fixing errors and reducing debt.
- Usual economic factors are not the only reasons mortgage rates change; global events also matter.
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