3 mortgage rate mistakes to avoid post-Fed rate pause
Summary
The Federal Reserve has paused interest rate increases for now, but mortgage rates remain high. Borrowers should avoid common mistakes like skipping mortgage rate locks, not shopping around for better rates, and ignoring wider economic trends to succeed in buying or refinancing homes.Key Facts
- The Federal Reserve paused its interest rate increases for the fifth time recently.
- Mortgage rates are still higher than before, affecting homebuyers and those refinancing.
- Locking in a mortgage rate now can protect borrowers from future rate rises.
- Most lenders allow borrowers to change their locked rate if rates drop before closing.
- Borrowers should compare mortgage rates from different lenders instead of sticking with familiar ones.
- Shopping around can lead to rates that are 0.5% to 1% lower than average.
- Mortgage rates can change due to economic factors like Treasury yields, inflation, unemployment, and global events.
- Being informed and cautious helps borrowers handle the current tough borrowing environment.
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