The latest trend in mortgage rates, combined with the future projections from the industry experts, may help you make a decision about whether you want to buy now or continue to wait. According to the experts, waiting is no longer the smart move (assuming you have no other reason to wait than getting the best mortgage rate). With rising rental prices and a projection in rising mortgage rates, it makes financial sense for most to buy right now.
Mortgage rates continue to drop, and have reached historical lows. Take a look at the chart below showing the 30-year fixed rate mortgages from Freddie Mac.
Despite the current low rates, many experts predict that rates will begin to rise this year. The Mortgage Bankers Association, The National Association of Realtors, Fannie Mae and Freddie Mac are all projecting a similar rise in mortgage interest rates for the next twelve months. They predict that rates will be up almost a full percentage point by this time next year. Take a look at some of their projections:
If you are seriously considering applying for a loan, it’s vital that you know your credit score and what it means for your ability to get a loan. The below chart depicts the average FICO score for people who have closed their purchase loans. How does your score compare to the average?