Interest rates have an ebb and flow to them, where one month they are rising only to see the next month decreasing. Looking from a general perspective, these interest rates have dropped significantly within the past 20 years and have been resting at a near historic low point. This however is looking to change as there have been recent small increases to the rates recently indicating a potential large shift in the market.
Data released by Freddie Mac showed the rates from the 30-year fixed rate rose an average 0.7 points for the previous week to 3.53%. This change may have been small, but it marked for this first time since September 2012 that the rate rose above the 3.5% mark. Other types of mortgages, such as the 15-year fixed rate and 5 Yr. ARM, are also showing slight increases which confirm a growing trend. With these increases now being noticed by the public, it is affecting the total number of mortgage applications. For the first time this year these applications saw their first decline in total number being processed for the month.
However, this mindset may be the wrong approach to take. With a known trend of increasing rates on the horizon, now is the best time to act and lock in the current rates. These rates vary, but getting the best interest rate depends on the following components:
- Credit Score: The higher the borrower’s score the better the rate
- Purchase Type: Your rate all depends on whether or not this is a primary residence, second home or investment property
- Transaction Request: Rates are complicated in design, and vary by decision to purchase or refinance
Do not wait and miss your opportunity to lock in a rate at the current low levels before they increase even higher. Integrity Financial Services has 35 years of mortgage and home loan banking experience and can secure you the best rate available. Give us a call or Contact Us today at 1-877-760-9854 to have a representative walk you through each step of the process and provide you with answers to your questions.