Fed Holds Rates Steady Amid Split Decision
The Federal Reserve held the benchmark interest rate at their current range of 3.5% to 3.75% in a split decision last week. This caused a sell-off in the bond market, forcing yields higher. This, in turn, caused an uptick in mortgage interest rates, with Freddie Mac reporting the national average on 30-year fixed-rate loans at 6.30% in their April 30th report. This is up from 6.23% one week prior, but still lower than the 6.76% average we saw one year ago at this time.
Home Buyer Tips for Today’s Market
The housing market has shifted to a buyer’s market in many areas nationwide, with reports of 44% more buyers than sellers. This gives buyers more leverage to negotiate better prices, repairs, or seller concessions.
In terms of securing the best interest rate, buyers can take a proactive approach by doing the following:
* Improve your credit score and reduce debt to qualify for the best rates.
* Get pre-approval early and shop with confidence.
* Explore lock-in options to guard against sudden rate increases.
* Have your documentation in order to expedite the approval process.
Give me a call if you – or your friends and family – are interested in buying a home, refinancing, or want to take advantage of built-up home equity. We provide side-by-side loan analyses to help you find the best option to meet your specific goals!