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3 mortgage rate mistakes to avoid in June
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As the calendar turns to June, many homebuyers may be wondering what’s in store for the real estate market and larger rate environment. With inflation stubborn — if significantly cooled — and interest rates stuck at their highest point in decades, homebuyers haven’t had much luck lately. Combined with limited inventory and higher home prices, this spring hasn’t been an opportune time for many homebuyers.
But June brings both new inflation numbers and another Federal Reserve announcement on rates, both of which will be released on June 12. And if the former is lower or even trending in the right direction, it could lead to positive changes in the rate climate — and give homebuyers a much-needed boost. But if inflation remains inconsistent, the Fed may hint at rate hikes to come, or higher rates for longer.
Against this frustrating backdrop, then, homebuyers should consider making some smart moves now, ahead of June. They should also do their best to avoid making certain costly rate mistakes. Below, we’ll break down three to avoid now.
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3 mortgage rate mistakes to avoid in June
In today’s volatile rate climate, homebuyers need to be judicious in their approach. This means avoiding easy-to-make mistakes such as:
Waiting for the Fed to cut rates
There’s no guarantee that the Fed will cut the federal funds rate, which influences what lenders offer for mortgages, on June 12. It’s more likely that they’ll keep the rate the same at a range between 5.25% and 5.50%, as it has been since last summer. But even if they were to issue a cut, it’s only likely to be a quarter of a percentage point reduction, which will lead to a negligible difference in mortgage rates.
At the same time, if buyers wait and rates rise — or even if the Fed simply hints at potential rate rises — the mortgage rate climate will become even more costly than it already is. So don’t wait for that to happen.
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Not locking in a rate now
While today’s mortgage rate of 7.17% for a 30-year mortgage isn’t most homebuyers’ idea of a good deal, particularly compared to the record-low rates of recent years, it’s also, historically, not that high. Mortgage rates have often been in the double digits in recent decades. And with the potential for rates to rise even further before this inflationary cycle is permanently cooled, it may not make sense to wait for a lower rate that never comes.
Instead, consider locking in the lowest rate you can find now. You could always unlock and relock a lower one before closing — or refinance when rates drop at some point in the future. But not locking in today’s rates now could be a mistake, especially if they head up toward 8% again.
Not knowing exactly which loan type to choose
In today’s mortgage rate climate, you’ll need to be nimble. That may mean exploiting a small window to lock in a mortgage rate. So it’s important to know exactly which mortgage type you plan to use now, before that time comes. While a conventional mortgage is often the most popular, an adjustable-rate mortgage, in which the rate changes over time but may be lower to start, offers unique advantages for borrowers right now.
Similarly, buying mortgage points to secure a lower rate may be helpful for some, especially in June. Whatever route you choose, make sure your lender knows your preference in advance, so that you can capitalize on any favorable rate changes when they arise.
The bottom line
In today’s mortgage rate market, it’s equally important for homebuyers to know what to do as it is to know which mistakes to avoid. To that end, buyers should strongly consider locking in a rate now and avoid waiting for the Fed to help with any favorable rate changes. They should also know exactly which mortgage type they plan to use now, so that they can pursue this loan type when their lender calls with an urgent need to act. With just weeks left before potential rate news in mid-June, buyers should consider getting to work now.
NEW YORK — Former New York Gov. David Paterson and his stepson were attacked in New York City on Friday night, authorities said.
The incident occurred just before 9 p.m. on Second Avenue near East 96th Street on the Upper East Side, according to the New York City Police Department.
Police said officers were sent to the scene after an assault was reported. When officers arrived, police say they found a 20-year-old man suffering from facial injuries and a 70-year-old man who had head pain. Both victims were taken to a local hospital in stable condition.
In a statement, a spokesperson for the former governor said the two were attacked while “taking a walk around the block near their home by some individuals that had a previous interaction with his stepson.”
The spokesperson said that they were injured “but were able to fight off their attackers.”
Both were taken to Cornell Hospital “as a precaution,” he added.
Police said no arrests have been made and the investigation is ongoing.
The 70-year-old Paterson, a Democrat, served as governor from 2008 to 2010, stepping into the post after the resignation of Eliot Spitzer following his prostitution scandal. He made history at the time as the state’s first-ever Black and legally blind governor.
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A 17-year-old boy was critically injured and a person is in custody after a gunman opened fire on a SEPTA bus in North Philadelphia Friday evening, police said.
At around 6:15 p.m., Philadelphia police were notified about a shooting on a SEPTA bus traveling on Allegheny Avenue near 3rd and 4th streets in North Philadelphia, Inspector D F Pace told CBS News Philadelphia.
There were an estimated 30 people on the bus at the time of the shooting, Pace said, but only the 17-year-old boy was believed to have been shot. Investigators said they believe it was a targeted attack on the teenager and that he was shot in the back of the bus at close range.
According to Pace, the SEPTA bus driver alerted a control center about the shooting, which then relayed the message to Philadelphia police, who responded to the scene shortly.
Officers arrived at the scene and found at least one spent shell casing and blood on the bus, but no shooting victim, Pace said. Investigators later discovered the 17-year-old had been taken to Temple University Hospital where he is said to be in critical condition, according to police.
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Through their preliminary investigation, police learned those involved in the SEPTA shooting may have fled in a silver-colored Kia.
Authorities then found a car matching the description of the Kia speeding in the area and a pursuit began, Pace said. Police got help from a PPD helicopter as they followed the Kia, which ended up crashing at 5th and Greenwood streets in East Mount Airy. Pace said the Kia crashed into a parked car.
The driver of the crashed car ran away but police were still able to take them into custody, Pace said.
Investigators believe there was a second person involved in the shooting who ran from the car before it crashed. Police said they believe this person escaped near Allegheny Avenue and 4th Street, leaving a coat behind.
According to Pace, police also found a gun and a group of spent shell casings believed to be involved in the shooting in the same area.
“It’s very possible that there may have been a shooting inside the bus and also shots fired from outside of the bus toward the bus,” Pace said, “We’re still trying to piece all that together at this time.”
This is an active investigation and police are reviewing surveillance footage from the SEPTA bus.