Home News Can you avoid that 6% mortgage rate? Here’s what pros think will happen next with mortgage rates

Can you avoid that 6% mortgage rate? Here’s what pros think will happen next with mortgage rates

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What will happen to the mortgage interest rate this month?

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Average interest rates on 30-year mortgages topped 6% last week, but many borrowers Still hooking low interest rates lower than that — Bankrate data comes to light after being below it for most of July and August. So we asked the pros: What happens next? Should we prepare for rising interest rates?

Greg McBride, chief financial analyst at Bankrate, said we should expect some yo-yo action in rates in September as the economy will slow faster than inflation, but we’re seeing it. It won’t be a big move. But he added that we should keep in mind that the pace of the Fed’s balance sheet outflow will double from September. “This will be most noticeable in the mortgage-backed securities market. All other things being equal, this will have an upward impact on mortgage rates,” he says McBride. (Check the lowest price here.)

According to the National Association of Realtors (NAR), data shows that mortgage rates have already priced in upcoming Fed rate hikes. “Inflation has likely peaked in the meantime, meaning it will taper off over the next few months. said Nadia Evangelou, senior economist and forecast director at the NAR. “There are signs that inflation may have peaked, but a 0.5% rate hike is more likely.” [this month]So mortgage rates won’t be significantly impacted by future rate hikes,” says Evangelou.

Meanwhile, NerdWallet points out that the Fed will update its interest rate policy on September 21st. The aftermath of the announcement could be another matter,” the site wrote. site “Borrowers need to brace themselves. Mortgage rates could rise gradually, like two steps up the ladder and one step down. It will match the upward trend of interest rates.” (Check the lowest price here.)

MBA Chief Economist Mike Fratantoni said in a statement: longer. He added: “Recent economic data is likely to prevent a significant decline in mortgage rates in the short term, but the strong job market shown in August data is It should support housing demand.”

Of course, all pros are just taking their best guesses and investors are trying to read the tea leaves on the economic outlook for the past few months while mortgage rates have zigzagged up. There doesn’t seem to be a clear consensus on where they’re going, but most experts we spoke to say rates aren’t going to fall significantly.

If you need lower rates, is ARM the right choice?

For buyers who don’t plan to stay in their home for more than about five years, variable rate mortgages offer lower fixed interest rates during the first few years of home ownership, helping to keep monthly payments down. “This option is ideal if you plan to sell your home before your loan switches to adjustable rates,” said Steve Reich, chief operating officer at Finance of America Mortgage. Please note that adjustments may result in a higher bill.

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