March Mortgage Rates
If you are ready to purchase or refinance a home then you might be thinking, “What the heck is going on with mortgage rates right now?” With all the uncertainty in our world right now, interest rates have been very volatile. As you have probably seen in news articles or social media posts – rates have gone up a lot in a short period of time. Luckily all indicators point to better rates in the near future. We have even seen some rate decreases already this week.
You might be asking…
“WHY are the rates going up so much?” The short answer is that lenders are overwhelmed with volume and are having capacity issues. In order to control their volume they have inflated interest rates in an attempt to slow down new loan submissions.
Next question
“What should I do if I want to refinance?” Well, the first step is to find a knowledgeable lender that you can trust. When you are shopping for a mortgage company you’ll notice that most interest rates will be comparable – the trick is to watch the closing costs. You don’t want to overpay for the interest rate that you’re being quoted. Once you find a lender go ahead and start the loan application process. This way you can be all approved and have your appraisal ready to go – then you’ll be ready to jump when the rates drop, which they will, and then lock and close your loan. The shorter the lock terms the better – for example if you have your loan completely approved and ready to go you could lock for 15 days instead of 30, which will help lower your interest rate.
What to do?
Don’t let the high interest rates discourage you from shopping for a new home or seeking out information on a refinance. All predictions say that things will settle down in the financial market soon and interest rates will start to decrease. Here at Legacy, we are still OPEN for business and eager to help you and answer any questions that you may have.
