Mortgage rates have a significant role in how much home you can afford. If you feel like you missed getting a low mortgage rate, keep in mind current rates are still lower than they were 10 years ago and historically, they are still very good.
Despite popular believe, the Federal Reserve is not responsible for rising rates - the Federal Reserve does not set mortgage interest rates. Mortgage rates are influenced by many factors, including inflation, economic growth, and the bond market. For example, with a stronger economy, demand for home loans tend to increase and the rise in home loans results in mortgage rates increasing.
Yet there are still things you can control to get the best possible rate, such as improving your credit score to saving for a down payment. Your actual interest rate is based on a range of criteria, including:
- Loan Amount
- Credit Score
- Loan Type
- Length of Loan
- Property Type
- Down Payment and More
As mortgage rates fluctuate, be sure you are speaking with a home loan advisor that understands how to get you the best rate possible. Contact GO Mortgage to learn more.