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3 big reasons to lock in a mortgage interest rate before September
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The housing market has been tough for buyers over the last few years. While mortgage rates were extremely low during the pandemic, increased competition from buyers, coupled with low levels of for-sale inventory, caused home prices to climb and bidding wars to become the norm. That priced out many buyers — even as mortgage rates hovered near 3%.
Inflation then began to heat up, and the Federal Reserve raised its benchmark rate repeatedly to try and temper it. That caused mortgage rates to balloon, with rates climbing above 8% at one point in late 2023. As a result, even more potential homebuyers were pushed to the sidelines to wait for shifts in the housing market landscape.
The good news is, though, that inflation is finally cooling. In turn, a window of opportunity is opening for buyers who want to secure an affordable mortgage loan. But if you want to capitalize on this opportunity, it could be smart to make your move now, before September rolls around.
Don’t wait any longer. Start comparing your top mortgage loan options online now.
3 big reasons to lock in a mortgage interest rate before September
Locking in your mortgage interest rate could be one of the smartest financial moves you make right now. Here’s why.
Mortgage rates recently hit a 15-month low
Earlier this month, mortgage rates dropped to 6.47%, down from 6.73% the week prior — their lowest point in 15 months. This created an unexpected opportunity for homebuyers to secure more affordable financing. With interest rates down, the monthly mortgage payment on a given loan amount is reduced, making homeownership more affordable.
Lower rates also mean that many buyers can afford more house for the same monthly payment. That has the potential to open up options in higher price ranges or more desirable neighborhoods that may have previously been out of reach.
There are also long-term benefits to consider. For example, even a small reduction in your interest rate can translate to tens of thousands of dollars in savings over the life of a 30-year mortgage loan. So if you’ve been concerned about how you can afford to buy a home in this high-rate environment, this could be the change you’ve been waiting for.
Ready to lock in a mortgage rate? Learn more about the best options available to you here.
Buyer competition could increase soon
The Federal Reserve’s first rate cut of 2024 is expected to happen in September, and when it does, it could cause homebuyer competition to increase. After all, when the Fed slashes its benchmark rate, it’s likely to cause mortgage rates to dip as well.
While lower mortgage rates are a good thing for your wallet, they also tend to increase the competition, as many of the buyers who’ve been waiting on the sidelines will re-enter the market. But these buyers will be entering a market that already faces inventory challenges.
And, as we’ve seen in the past, more buyers competing for a limited number of homes can lead to bidding wars and inflated prices, making it more difficult and potentially more expensive to secure your desired property. This could potentially price out you and other buyers who might have been able to afford the home under current conditions.
By locking in your rate and moving forward with your home purchase before this anticipated rush, though, you position yourself ahead of the crowd. This proactive approach could mean the difference between securing your dream home at a favorable rate and finding yourself priced out of your preferred market.
The savings may not be worth the wait
Another reason to lock in your mortgage rate now rather than waiting is the reality of how much rates are likely to change. While there’s anticipation surrounding the Fed’s actions, the actual impact on mortgage rates may be less dramatic than some hope.
The initial Federal Reserve rate cut is anticipated to be just 0.25%. This relatively small adjustment may not translate to a significant drop in mortgage rates. Plus, the financial markets tend to price in expected Fed moves before they happen, so by the time the Fed cuts rates, much of the impact may already be reflected in current mortgage rates. This means that the impact of a Fed rate cut on mortgage rates could be minimal.
But even if mortgage rates do decrease slightly, the potential savings need to be weighed against the risks of waiting. Is it really worth losing out on your preferred property or facing increased competition and higher home prices to get a slightly lower rate? In some cases, the opportunity cost of waiting could far outweigh any minor rate reduction.
The bottom line
The current mortgage market presents a unique opportunity for homebuyers. With rates at a 15-month low, the threat of increased competition on the horizon and the reality that future rate drops may be minimal, the case for locking in your mortgage rate before September is strong. By acting now, you position yourself to take advantage of favorable conditions and potentially save significant money over the life of your loan.
CBS News
Yellowstone hiker burned when she falls into scalding water near Old Faithful, park officials say
Yellowstone National Park, Wyo. — A New Hampshire woman suffered severe burns on her leg after hiking off-trail in Yellowstone National Park and falling into scalding water in a thermal area near the Old Faithful geyser, park officials said.
The 60-year-old woman from Windsor, New Hampshire, along with her husband and their leashed dog were walking off a designated trail near the Mallard Lake Trailhead on Monday afternoon when she broke through a thin crust over the water and suffered second- and third-degree burns to her lower leg, park officials said. Her husband and the dog weren’t injured.
The woman was flown to Eastern Idaho Regional Medical Center in Idaho Falls, Idaho for treatment.
National Park Service / Jacob W. Frank
Park visitors are reminded to stay on boardwalks and trails in hydrothermal areas and exercise extreme caution. The ground in those areas is fragile and thin and there’s scalding water just below the surface, park officials said.
Pets are allowed in limited, developed areas of Yellowstone park but are prohibited on boardwalks, hiking trails, in the backcountry and in thermal areas.
The incident is under investigation. The woman’s name wasn’t made public.
This is the first known thermal injury in Yellowstone in 2024, park officials said in a statement. The park had recorded 3.5 million visitors through August this year.
Hot springs have injured and killed more people in Yellowstone National Park than any other natural feature, the National Park Service said. At least 22 people have died from hot spring-related injuries in and around the 3,471-square-mile national park since 1890, park officials have said.
TRENTON, N.J. — Democratic Newark City Council President LaMonica McIver has defeated Republican small businessman Carmen Bucco in a contest in New Jersey’s 10th Congressional District that opened up because of the death of Rep. Donald Payne Jr. in April.
McIver will serve out the remainder of Payne’s term, which ends in January. She and Bucco will face a rematch on the November ballot for the full term.
McIver said in a statement Wednesday that she stands on the “shoulders of giants,” naming Payne as chief among them.
She cast ahead to the November election, saying the right to make reproductive health choices was on the ballot as well as whether the economy should benefit the wealthy or “hard working Americans.”
“I will fight because the purpose of politics and the purpose of our vote is to give the people of our communities and our nation a bold voice,” she said.
Bucco congratulated McIver on the victory in a statement but said he’s looking forward to the rematch in November.
“I am not going anywhere,” he said in an email. “We still have a second chance to make district 10 great again!”
Who are LaMonica McIver and Carmen Bucco?
McIver emerged as the Democratic candidate in a crowded field in the July special election. A member of the city council of New Jersey’s biggest city since 2018, she also worked for Montclair Public Schools as a personnel director and plans to focus on affordability, infrastructure, abortion rights and “protecting our democracy,” she told The Associated Press earlier this summer.
Bucco describes himself on his campaign website as a small-business owner influenced by his upbringing in the foster system. He lists support for law enforcement and ending corruption as top issues.
The 10th District lies in a heavily Democratic and majority-Black region of northern New Jersey. Republicans are outnumbered by more than 6 to 1.
It’s been a volatile year for Democrats in New Jersey, where the party dominates state government and the congressional delegation.
Among the developments were the conviction on federal bribery charges of U.S. Sen. Bob Menendez, who has denied the charges, and the demise of the so-called county party line — a system in which local political leaders give their preferred candidates favorable position on the primary ballot.
Democratic Rep. Andy Kim, who’s running for Menendez’s seat, and other Democrats brought a federal lawsuit challenging the practice as part of his campaign to oust Menendez, who has resigned since his conviction.
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Yellowstone hiker burned when she falls into scalding water near Old Faithful, park officials say
Wagon rolls over at Wisconsin apple orchard injuring about 25 children and adults