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With mortgage rates below 3% a reality, here’s what homeowners and buyers need to do now:

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With mortgage rates below 3 a reality heres what homeowners
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With mortgage rates below 3% a reality, here's what homeowners and buyers need to do now:

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The average 30-year mortgage rate has plunged back below 3%, while the 15-year interest rate has fallen to nearly all-time lows, according to Freddie Mac. Here’s how to take advantage of a mortgage interest rate of less than 3%. (iStock)

Mortgage rates fell below 3% in July for many home loan products, including the popular 30-year fixed-rate mortgage, according to Freddie Mac. Rates also fell to near record lows on 15-year fixed-rate mortgages, which are often used for refinancing.

While mortgage rates peaked in early 2021, data points to a downward trend in the summer months. The 30-year yield has been hovering around 3% since April, followed by a larger decline on July 8 the dip in US Treasury yields.

With mortgage rates below 3% a reality, here's what homeowners and buyers need to do now:

But this historically low mortgage rate won’t last forever. The Federal Reserve predicts two rate increases by 2023, which will almost certainly increase interest rates on mortgages. The Mortgage Bankers Association (MBA) predicts that the interest on a 30-year mortgage rise to 4.9% in 2023.

If you’re considering buying a home or refinancing your current mortgage, now is the time to lock in a mortgage interest rate below 3%. Make sure you get the best rate for your situation by shopping around and comparing quotes from multiple lenders. You can get prequalified and compare rates on Credible’s online loan marketplace, all without impacting your credit score.

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Mortgage Rate Trends: What You Need to Know When Buying or Refinancing?

Rates on both 15- and 30-year mortgage options are lower than they were a year ago.

The rates for a 30-year mortgage are 2.90%, which, according to Freddie Mac, is 0.08% lower than the week before and 0.13% lower than in July 2020. The rates for a fixed-term mortgage 15-year interest rates are 2.20%, down 0.06% from last week and 0.311% from last year.

The 30-year mortgage rate hit an all-time low of 2.65% in the week of January 7, 2021, but mortgage rates are unlikely to fall back to that low as the economy continues its recovery from the pandemic. The 15-year yield also fell to an all-time low in January 2021, to a staggering 2.16% – not much lower than the current rate of 2.20%.

We expect economic growth to gradually push interest rates up, but home buyers and refinancers still have the opportunity to take advantage of the 30-year yield, which is expected to hover around three percent.

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– Statement of July 8 from Freddie Mac

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Homeowners who are consider refinancing should do so, while the 15-year yield is near record lows. By refinancing to a shorter mortgage term, you may be able to pay off your total loan amount faster without significantly increasing your mortgage payments.

Don’t miss out on historically low mortgage rates, because it’s impossible to know if rates will continue to fall or even how long they will stay that low. Fix your mortgage purchase or refinancing rate now by shopping around on Credible. The table below allows you to compare the estimated annual percentage rate (APR) offered by some of Credible’s partner lenders.

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Future home buyers: get pre-approved to lock in current mortgage rates

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Buying a home in today’s competitive housing market can be challenging due to low inventory and high demand. But the hot market is show signs of cooling, with a decline in mortgage applications and more inventory expected to flood the market this fall.

The interest rate on a 30-year mortgage should not remain below 3% for long. The MBA predicts that 30-year interest rates will average 3.5% in 2021, assuming mortgage rates continue to rise in the second half of the year.

However, there is good news: Mortgage Approvals usually last about three months, so you can still get a low mortgage rate if you wait for the housing stock to increase before buying your home. Doing this also allows you to lock in a lower monthly mortgage payment.

You can be pre-approved through multiple mortgage lenders in just three minutes on Credible.

THE BASIS OF CLOSING A HOUSE AND COSTS

Getting multiple mortgage interest deduction quotes can save you thousands

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Mortgage lenders set their rates based on a number of factors, so one lender may be able to offer you a lower rate than another. That is why it is so important to look for the lowest possible mortgage interest rate when you buy a house or transfer your current mortgage.

Research by Freddie Mac estimates that: buyers can save $1,500 over the life of the loan by comparing just one additional lender, or $3,000 for getting five rate quotes. You can use a mortgage calculation to get an idea of ​​how much a lower interest rate could also affect your monthly payment.

You do not have to make extra calls to mortgage lenders or do your own online research. credible let you compare mortgages from multiple lenders by filling out a single form, all without affecting your credit score.

WHAT YOU NEED TO KNOW BEFORE PUTTING A DEPOSIT ON YOUR HOME

Do you have a financial question, but don’t know who to ask it? Email The Credible Money Expert at: [email protected] and your question can be answered by Credible in our Money Expert column.

The post With mortgage rates below 3% a reality, here’s what homeowners and buyers need to do now: appeared first on Notesradar.

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