Mortgage Rates Drop To Their Lowest Level In Over A Year
According to CNN.com, mortgage rates have dropped to their lowest level in over a year. “The average rate for a 30-year loan now stands at 4.1%, according to Freddie Mac. Low mortgage rates and home prices that are climbing more slowly should boost the housing market…that should provide a solid foundation for home sales this fall.”
Locking In the Mortgage Rate
Because the interest rate market fluctuates constantly and is subject to quick movements without notice, locking in a mortgage rate with a lender certainly protects you from the time your lock is confirmed to the day it expires. Lock-ins make sense in a rapidly rising rate environment or when borrowers expect rates to climb during the next 30 to 60 days, which is typically the amount of time a lock-in remains in effect.
A lock-in given at the time of application is useful because it may take the lender several weeks to prepare a loan application. These days, however, automated loan practices have cut the time down substantially. Some lenders require you to pay a lock-in fee to guarantee both the rate and the terms; they are not necessarily free. If your lock-in expires before you close on the loan, most lenders will base the loan rate on current market interest rates and points.
Contact Damon today to find out more about the current mortgage rates and for all your real estate needs.
