Mortgage Rates: Why They're Always Changing and What You Can Do About It

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Trying to predict where mortgage rates are going can feel like trying to hit a moving target. Just when you think you've got a handle on things, rates change again. While it may be frustrating, there's actually a good reason why mortgage rates are always changing—and there are steps you can take to insulate yourself from rate fluctuations. Here's what you need to know.

 Here's What Really Drives Mortgage Rates | Bankrate

Why Mortgage Rates Keep Changing

Mortgage rates are set by the bond market and are influenced by a variety of factors, including:

-Federal Reserve policy

-The health of the overall economy

-Inflationary pressure

-Supply and demand in the housing market

 

All of these factors are constantly in flux, which is why mortgage rates change so frequently. In fact, rates can even change multiple times in a single day!

 

What You Can Do About It

While it may seem like there are no escaping volatile mortgage rates, there are actually several things you can do to insulate yourself from rate fluctuations, including

 

-Lock in your rate. If you're shopping for a home and have found one that you love, don't wait to lock in your interest rate. Once you've found a rate you're happy with, locking it in protects you from any future increases. Furthermore, look at bmo mortgage rates.

 

-Get pre-approved for a mortgage. Getting pre-approved for a mortgage gives you a firm idea of how much house you can afford and gives sellers confidence that you're a serious buyer.

 

-Shop around for the best deal. Don't just go with the first mortgage offer that comes your way. Shopping around will help ensure that you get the best possible deal on your home loan.

 

-Think long-term. If you're not planning on staying in your home for more than a few years, it may make sense to take out a shorter-term mortgage. That way, you can save on interest payments and pay off your loan faster. So, look at desjardins mortgage rates.  

 

-Make extra payments. Making extra payments on your mortgage can help you pay off your loan faster and save on interest payments.

 

-Refinance. If rates drop, you may be able to lower your monthly payments by refinancing your mortgage.

 

-Talk to a mortgage professional. A mortgage professional can help you navigate the ever-changing world of interest rates and find the best deal for your situation.

 

-Keep your credit score high. Your credit score is one of the key factors that lenders look at when determining your mortgage rate. So, if you want to get the best possible rate, it's important to keep your credit score as high as possible.

 

-Avoid adjustable-rate mortgages. ARMs are adjustable-rate mortgages (ARMs) that begin with a low, fixed rate for a set length of time and then rise or fall after that. This can be risky if rates go up, so it's generally best to avoid ARMs altogether.

 

-Research government programs. If you're a first-time homebuyer, you may be eligible for special government programs that offer lower interest rates.

 

If recent history has taught us anything, it's that predicting where mortgage rates will go next can be difficult, if not impossible.

 

However, by taking steps like locking in your interest rate or getting pre-approved for a mortgage, you can insulate yourself from rate fluctuations and ensure that you get the best possible deal on your home loan.

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