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What homebuyers should do if mortgage rates don’t fall
Homebuyers hoping for an imminent reduction in mortgage interest rates saw their hopes dashed this month when the newest report from the Bureau of Labor Statistics showed inflation higher than expected. That January report followed a disappointing December one, underlining that more work needs to be done before the Federal Reserve hits its target 2% goal (inflation currently sits at 3.1%).
Elevated inflation means the benchmark interest rate range will likely remain unchanged from its current 23-year high and, accordingly, mortgage interest rates will stay high, too. While rate cuts were hoped for as early as March, it’s possible they won’t come now until May or even June.
Against this backdrop, homebuyers eager to act have limited options — but there are still some viable paths to take now. Below, we’ll break down three things homebuyers should do if mortgage rates don’t fall soon.
Start by exploring your mortgage rate options here to see what you could qualify for.
What homebuyers should do if mortgage rates don’t fall
Here are three things homebuyers should do if mortgage rates don’t fall.
Consider their options
Because mortgage rates are high right now it doesn’t mean you still can’t secure a below-average rate. It’s easy to get a mortgage rate half a percentage point lower than the median rate simply by purchasing mortgage points from your preferred lender. But you may also get a lower rate by starting with an adjustable-rate mortgage — and refinancing to a lower, fixed rate in the future.
While neither option will resurrect the 3% rates that could have been secured in recent years, every dollar will count. And even a mortgage rate half a point lower could result in tens of thousands of dollars saved over the life of your loan.
Learn more about your mortgage rate options here now.
Boost your credit score
Remember that most advertised mortgage interest rates are for lenders with the highest credit scores and cleanest credit profiles. So if you don’t have both, you’ll likely get a rate that’s even higher than today’s average 7.29%. So, before applying — or while waiting for some positive movement in the mortgage rate environment — do all you can to boost your credit score. This can involve paying off debt, making monthly payments on time (or early) and, perhaps most importantly, refraining from applying for new credit (and, thus, dinging your credit score in the interim).
Buy a home anyway
Sure, today’s rates aren’t ideal, particularly compared to the recent past. But, historically, according to Freddie Mac data, they’re in line with what homebuyers could usually expect. So don’t wait around for a perfect rate because it may not come around again anytime soon. Instead, buy a home anyway. This will ensure that you don’t lose out on your dream home, should it come on the market now.
But it could also mean moving your monthly payments from renting to owning, ensuring your money doesn’t go to waste. Plus, if rates drop before you close you could always unlock and relock to the new, lower rate — or you can refinance in the future if the rate environment stabilizes.
The bottom line
Today’s mortgage rate environment is elevated and the forecast for rate reductions is unclear. With this understanding, homebuyers should make some strategic moves now. This includes exploring all potential options to secure a below-average rate while also improving their credit to make sure that they can qualify for the lowest rate available. Finally, it may require acting anyway, even if the rate climate is imperfect, in order to stop paying rent and start building equity for the future.
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In praise of Seattle-style teriyaki
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Gazan chefs cook up hope and humanity for online audience
Renad Atallah is an unlikely internet sensation: a 10-year-old chef, with a repertoire of simple recipes, cooking in war-torn Gaza. She has nearly a million followers on Instagram, who’ve witnessed her delight as she unpacks parcels of food aid.
We interviewed Renad via satellite, though we were just 50 miles away, in Tel Aviv. [Israel doesn’t allow outside journalists into Gaza, except on brief trips with the country’s military.]
“There are a lot of dishes I’d like to cook, but the ingredients aren’t available in the market,” Renad told us. “Milk used to be easy to buy, but now it’s become very expensive.”
I asked, “How does it feel when so many people like your internet videos?”
“All the comments were positive,” she said. “When I’m feeling tired or sad and I want something to cheer me up, I read the comments.”
We sent a local camera crew to Renad’s home as she made Ful, a traditional Middle Eastern bean stew. Her older sister Noorhan says they never expected the videos to go viral. “Amazing food,” Noorhan said, who added that her sibling made her “very surprised!”
After more than a year of war, the Gaza Strip lies in ruins. Nearly everyone has been displaced from their homes. The United Nations says close to two million people are experiencing critical levels of hunger.
Hamada Shaqoura is another chef showing the outside world how Gazans are getting by, relying on food from aid packages, and cooking with a single gas burner in a tent.
Shaqoura also volunteers with the charity Watermelon Relief, which makes sweet treats for Gaza’s children.
In his videos online, Shaqoura always appears very serious. Asked why, he replied, “The situation does not call for smiling. What you see on screen will never show you how hard life is here.”
Before dawn one recent morning in Israel, we watched the UN’s World Food Program load nearly two dozen trucks with flour, headed across the border. The problem is not a lack of food; the problem is getting the food into the Gaza Strip, and into the hands of those who desperately need it.
The UN has repeatedly accused Israel of obstructing aid deliveries to Gaza. Israel’s government denies that, and claims that Hamas is hijacking aid.
“For all the actors that are on the ground, let the humanitarians do their work,” said Antoine Renard, the World Food Program’s director in the Palestinian territories.
I asked, “Some people might see these two chefs and think, well, they’re cooking, they have food.”
“They have food, but they don’t have the right food; they’re trying to accommodate with anything that they can find,” Renard said.
Even in our darkest hour, food can bring comfort. But for many in Gaza, there’s only the anxiety of not knowing where they’ll find their next meal.
For more info:
Story produced by Mikaela Bufano. Editor: Carol Ross.
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“Sunday Morning” 2024 “Food Issue” recipe index
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A study to devise nutritional guidance just for you
It’s been said the best meals come from the heart, not from a recipe book. But at this USDA kitchen, there’s no pinch of this, dash of that, no dollops or smidgens of anything. Here, nutritionists in white coats painstakingly measure every single ingredient, down to the tenth of a gram.
Sheryn Stover is expected to eat every crumb of her pizza; any tiny morsels she does miss go back to the kitchen, where they’re scrutinized like evidence of some dietary crime.
Stover (or participant #8180, as she’s known) is one of some 10,000 volunteers enrolled in a $170 million nutrition study run by the National Institutes of Health. “At 78, not many people get to do studies that are going to affect a great amount of people, and I thought this was a great opportunity to do that,” she said.
It’s called the Nutrition for Precision Health Study. “When I tell people about the study, the reaction usually is, ‘Oh, that’s so cool, can I do it?'” said coordinator Holly Nicastro.
She explained just what “precise” precisely means: “Precision nutrition means tailoring nutrition or dietary guidance to the individual.”
The government has long offered guidelines to help us eat better. In the 1940s we had the “Basic 7.” In the ’50s, the “Basic 4.” We’ve had the “Food Wheel,” the “Food Pyramid,” and currently, “My Plate.”
They’re all well-intentioned, except they’re all based on averages – what works best for most people, most of the time. But according to Nicastro, there is no one best way to eat. “We know from virtually every nutrition study ever conducted, we have inner individual variability,” she said. “That means we have some people that are going to respond, and some people that aren’t. There’s no one-size-fits-all.”
The study’s participants, like Stover, are all being drawn from another NIH study program called All Of Us, a massive undertaking to create a database of at least a million people who are volunteering everything from their electronic health records to their DNA. It was from that All of Us research that Stover discovered she has the gene that makes some foods taste bitter, which could explain why she ate more of one kind of food than another.
Professor Sai Das, who oversees the study at Tufts University, says the goal of precision nutrition is to drill down even deeper into those individual differences. “We’re moving away from just saying everybody go do this, to being able to say, ‘Okay, if you have X, Y and Z characteristics, then you’re more likely to respond to a diet, and somebody else that has A, B and C characteristics will be responding to the diet differently,'” Das said.
It’s a big commitment for Stover, who is one of 150 people being paid to live at a handful of test sites around the country for six weeks – two weeks at a time. It’s so precise she can’t even go for a walk without a dietary chaperone. “Well, you could stop and buy candy … God forbid, you can’t do that!” she laughed.
While she’s here, everything from her resting metabolic rate, her body fat percentage, her bone mineral content, even the microbes in her gut (digested by a machine that essentially is a smart toilet paper reading device) are being analyzed for how hers may differ from someone else’s.
Nicastro said, “We really think that what’s going on in your poop is going to tell us a lot of information about your health and how you respond to food.”
Stover says she doesn’t mind, except for the odd sounds the machine makes. While she is a live-in participant, thousands of others are participating from their homes, where electronic wearables track all kinds of health data, including special glasses that record everything they eat, activated when someone starts chewing. Artificial intelligence can then be used to determine not only which foods the person is eating, but how many calories are consumed.
This study is expected to be wrapped up by 2027, and because of it, we may indeed know not only to eat more fruits and vegetables, but what combination of foods is really best for us. The question that even Holly Nicastro can’t answer is, will we listen? “You can lead a horse to water; you can’t make them drink,” she said. “We can tailor the interventions all day. But one hypothesis I have is that if the guidance is tailored to the individual, it’s going to make that individual more likely to follow it, because this is for me, this was designed for me.”
For more info:
Story produced by Mark Hudspeth. Editor: Ed Givnish.
“Sunday Morning” 2024 “Food Issue” recipe index
Delicious menu suggestions from top chefs, cookbook authors, food writers, restaurateurs, and the editors of Food & Wine magazine.