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Why you should lock in your mortgage rate this April
There are few events that are quite as satisfying as unlocking the door to your newly purchased home for the first time. And buying a home can have a meaningful impact on your ability to build wealth. After all, if you’re renting, your monthly payments aren’t generating any equity and until you buy a home, you’ll likely always have a monthly rent payment to make.
But that’s not the only reason you should act now if you’re interested in purchasing a home. In fact, waiting too long to lock in your mortgage rate in today’s inflationary environment could be a mistake. Below, we’ll break down three reasons why you should consider locking in a mortgage rate this month.
Lock in your mortgage rate now to avoid paying potentially higher rates in the future.
Why you should lock in your mortgage rate this April
Many homebuyers have been waiting on the sidelines for interest rates to fall, but that could prove to be a mistake. Here’s why:
Unabated inflation continues
Inflation rates came in hotter than expected in January, February and March. And increasing rent prices have played a significant role in those higher than expected inflation rates. As unabated inflation continues, the high cost of renting a home may only grow.
At the same time, stubborn inflation has already started to send mortgage rates up. In fact, the average 30-year mortgage rate was 6.82% on April 4, 2024. Today, the average 30-year mortgage rate is 7.22% – 0.4% higher.
The good news is that if you lock in your mortgage rate now, you can avoid any continued increases in those rates. And when you buy your home, you’ll know that there’s no landlord involved who can raise your housing costs.
Don’t wait for inflation to push rates even high. Lock in your mortgage rate today.
The Federal Reserve may raise rates
The Federal Reserve’s federal funds rate is the primary benchmark interest rate that lenders typically base their interest rates off of. And the Fed pushed that rate to a 23-year high in an attempt to combat COVID-era inflation. As inflation cooled, expectations of rate cuts started to circulate. But those expectations are dwindling.
“With recent inflation reports higher than the Fed would have liked, Jerome Powell has indicated rate cuts by the end of the year may not be a given,” explains Alex Blackwood, CEO and co-founder of the alternative real estate investing platform, Mogul Club. “Because of his statements, mortgage rates have reacted by jumping.”
But those rate increases could just be the beginning. Keep in mind that the Federal Reserve typically raises its federal funds rate when inflation is too high. And inflation rates have been up for the past two months.
So, not only is the Fed less likely to cut rates in 2024, if inflation data continues to be a cause for concern, it could increase them. That could mean that higher mortgage rates are ahead. In turn, by locking in your rate now, you can avoid potentially higher borrowing costs later.
The U.S. housing supply gap may grow
The housing supply in the United States has failed to keep up with demand as of late, which has given sellers the upper hand. However, as more homebuyers await lower rates on the sidelines, an opportunity has emerged.
“While there is a low amount of supply, the waning promise of lower interest rates by year end has dried up some of the demand,” says Blackwood. “Sellers may be skittish and willing to sell with more concessions.”
That’s good news for buyers – for now. If there is any indication that rates may go down, buyers could begin to flood the market, further expanding the housing supply gap and limiting the concessions sellers are willing to make. So, locking in your mortgage rate now may mean you get a better deal on your home.
Lock in your mortgage rate now before the supply gap has the potential to grow.
The bottom line
If you’re thinking about buying a home any time soon, now may be the right time to lock in your mortgage rate. As inflation continues, the risk of further increases to mortgage rates becomes more pressing. Moreover, the housing supply gap could grow if you wait too long. But beyond that, it’s also important to think about what’s best for your family.
“Regardless of mortgage rates and economic conditions, it comes down to affordability, finding the right home for you and your family, and understanding that, eventually, mortgage rates may come down,” says Todd Gosden, senior vice president of national sales at the mortgage lending company, Keller Home Loans. So, it may be wise to purchase a home that meets your family’s needs now, and refinance your mortgage later if rate cuts do come to fruition.
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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.