Why a mortgage rate lock makes sense this September
Summary
Mortgage interest rates are currently higher than they were six months ago, with an average rate of 6.87% for a 30-year mortgage. Buyers may want to lock in their mortgage rate this September to protect themselves from possible increases, especially since the Federal Reserve might raise interest rates again soon.Key Facts
- The average mortgage rate on a 30-year loan is 6.87% as of September 1.
- Mortgage rates had been expected to fall but have instead risen over the past six months.
- The Federal Reserve is likely to increase interest rates on September 16.
- Lenders might raise mortgage rates even before the official Fed announcement.
- A Fed rate hike this month could start a series of rate increases in coming months.
- Locking a mortgage rate now can protect buyers from higher future rates.
- Buyers can sometimes lower their locked rate before closing if rates drop.
- It is important to know if your mortgage lender offers a “rate float down” option.
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