10
Oct
By Fred Gruber
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Uncategorized

Why You Should Compare Different Mortgages

Comparing mortgages is a crucial step in the process of buying a home or refinancing an existing mortgage. Here are some reasons why:

Save Money: Comparing mortgages can help you save money by finding the best interest rates and terms available. A lower interest rate can mean thousands of dollars in savings over the life of a mortgage.

Avoid Pitfalls: By comparing mortgages, you can avoid pitfalls such as hidden fees, penalties, or other unfavorable terms that can cost you money and cause financial stress.

Negotiate Better Terms: If you have a good understanding of what’s available in the mortgage market, you can negotiate better terms with lenders.

Peace of Mind: Comparing mortgages can give you peace of mind that you are making the best financial decision for your situation.

Each person’s financial situation is unique, so finding the right mortgage that fits your individual needs is important. Comparing mortgages can help you find the right type of mortgage, such as a fixed-rate or adjustable-rate mortgage, that suits your budget and financial goals. It can be a complex process, but here are some general steps you can take to help guide you in your search.

Determine your budget: The first step is to determine how much you can afford to borrow. Consider your monthly income, expenses, and savings to figure out how much you can comfortably afford to pay each month toward your mortgage.

Shop around: Look at different mortgage options from different lenders to compare interest rates, fees, and terms. Don’t just go with the first offer you receive, as there may be better options available.

Consider the type of mortgage: There are different types of mortgages available, such as fixed-rate mortgages and adjustable-rate mortgages. Each type has its own advantages and disadvantages, so research and consider which option would work best for your needs.

Think about the length of the loan: Mortgages typically come in 15- or 30-year terms, but other options may be available. Longer terms mean lower monthly payments, but more interest paid over time. Shorter terms mean higher monthly payments, but less interest paid overall.

Check your credit score: Your credit score can affect the interest rate you qualify for, so make sure it’s in good shape before applying for a mortgage.

Get pre-approved: Getting pre-approved for a mortgage can give you a better idea of what you can afford, and it can also help you be taken more seriously by sellers when making an offer on a home.

Remember, taking the time to research and compare your options can help you find the right mortgage for your needs and budget and is an essential step in the home-buying process, and it can help you save money, find the right mortgage, avoid pitfalls, negotiate better terms, and have peace of mind. A mortgage broker can help you find and compare mortgage options from different lenders, which can save you time and potentially help you find a better deal.

09
Oct
By Fred Gruber
0 Comments
Financial Reports

What’s Ahead For Mortgage Rates This Week – October 9, 2023

The previous week offered a blend of economic updates, covering a report on the jobs market and weekly changes in mortgage rates.

The Jobs Report Was Released
This week, the monthly jobs report was released by the United States Bureau of Labor and Statistics. It showed that the job market completely exceeded all expectations, adding 336,000 jobs during the month of September. That was far higher than the expected number of 170,000. It also represents a significant increase when compared to August, where the economy added a revised total of 227,000 jobs.

The unemployment rate remained relatively steady, coming in at 3.8 percent, which is the same as August. This jobs report is important because it could play a role in whether the Fed decides to raise interest rates in November or keep them the same. With the jobs growth exceeding all expectations, it could give the Fed reason to raise interest rates, as the Fed might believe the economy is still red hot and can tolerate higher interest rates.

A Shift in Mortgage Rates and Employment Dynamics
The 30-year fixed mortgage, the most popular in the United States, continues to trend upward. This week, the average 30-year fixed climbed to 7.8 percent, up significantly from 7.55 percent last week. This is also significantly higher than the rates were in August, which averaged around 7.15 percent. Some experts are stating that a potential rate of 8 percent is not out of the question.

The 15-year fixed mortgage rate has also continued to trend upward, albeit not as much. This week, the average rate for a 15-year fixed mortgage was 7.12 percent, up from 7.05 percent last week. This is still significantly higher than the 6.5 percent average that we saw in August.

It is clear that these rising mortgage rates are putting a damper on those looking to buy a home; however, it does not appear to have caused a major drop in housing prices, although its impacts could still be yet to come.

Consumer Sentiment: A Mild Dip
Consumer sentiment appears to be holding steady, with the current numbers coming in around 68.1. This is still a bit lower than the numbers were in August when they came in at around 69.5. At the same time, the overall sentiment of the current economic conditions continues to trend downward, coming in around 71.4, compared to 75.5 in August.

Consumers are still concerned about inflation and rising interest rates, which make it harder to make ends meet. It will be interesting to see how the jobs report impacts consumer sentiment moving forward.

Looking Forward
The Producer Price Index is due to be released next week, which is another key component of inflationary data. For now, all eyes will be on the Fed’s next meeting, which takes place in early November. The Fed will decide whether to raise rates or hold them steady for another cycle.

02
Oct
By First Rate Financial Group
Financial Reports

What’s Ahead For Mortgage Rates This Week – October 2, 2023

Last week, consumers were treated to several indicators on inflation that not only paint a picture of the economy’s health but also give the Fed more information to work with as it continues to aim for a soft landing.

August Sees a Slight Upward Trend in Inflation

This week, the personal consumption expenditures price index, which excludes more volatile commodities like food and energy, increased 0.1 percent for the month. This is lower than the expected value of 0.2 percent, which indicates that the rising interest rates are starting to have an impact on the economy as the Fed continues to work to bring down inflation.

When compared to the previous 12 months, the price index was up 3.9 percent. This matched expectations and shows that inflation could finally be turning a corner. In addition, consumer spending rose 0.4 percent in August, which is down sharply from 0.9 percent in July. This is another indicator that higher interest rates are having an impact on consumers, who are finally pulling back on their spending.

As the month continues to progress, a lot of people will wait and see how the Fed’s decision to hold interest rates steady will impact the economy. Those looking for houses will probably be excited that interest rates were held steady, but it will be interesting to see how this decision impacts the fight against inflation.

Mortgage Rates Continue To Rise

This week, the 30-year fixed mortgage rate sits at around 7.59 percent on average, which remains one of the highest rates in decades. In August, the average rate was 7.18 percent, indicating that rates have gone up sharply. This is also up slightly from the previous week, where the average 30-year fixed rate was 7.51 percent.

What's Ahead For Mortgage Rates This Week - October 2, 2023In addition, 15-year fixed mortgage rates have gone up as well, with the national average sitting at around 6.82 percent. This is up from last week, when the average 15-year fixed was 6.51 percent. This is also up slightly from August, where the rates hovered around 5.84 percent.

Because the Federal Reserve decided to hold interest rates study, many home buyers are hoping that mortgage rates will stabilize for a couple of months. It remains to be seen if that will happen.

Consumer Sentiment Might Be Stabilizing

The consumer sentiment report from the University of Michigan is stabilizing, with numbers for September coming in at around 68.1. While this is a slight dip from August’s average numbers, the numbers for September are starting to rise.

Consumers might be starting to relax a little bit because inflationary numbers are starting to come down. For consumer sentiment to rise further, mortgage rates might have to come down without contributing to a spike in inflation or home prices.

This dip implies that despite the decreasing inflation rates, there remains a cloud of uncertainty amongst consumers. This could be attributed to potential interest rate hikes and a subtle slowing down of the job market. The prevailing mood is still optimistic, but the trend is shifting.

Looking To Next Week

Next week, the unemployment data is going to be released, as initial jobless numbers are going to come in. This is a key indicator because rising interest rates generally lead to more layoffs, which could jeopardize the Fed’s goal of a soft landing.