Mortgage Rate Predictions for 2024
November 22, 2023
The short-term gains benefit anyone considered ready to apply, but those who need more time should not interpret such trends as long-term patterns until there’s enough of a history of consistently lower rates.
FHA Home Loan Mortgage Rate Improvement
In the short term, rates can move sharply higher or lower, but over the long term, such moves won’t mean anything until they consistently perform at those levels. A good example of that? In October 2023, mortgage rates were reported by Bankrate as hitting 8%.
But that didn’t persist, and it was a short term increase. Over time, numbers fell back down into the 7% range. The fact that the rates hit 8% briefly wasn’t necessarily an indicator that rates would soon rise and stay in that range.
You may find rates changing by a few increments daily, but that doesn’t mean much until shored up by larger patterns.
Mortgage Rate Protection
Some read the above and wonder how to protect themselves against rate changes.
When you find a house you are serious about making an offer on, that’s the time to talk to your participating FHA lender about locking the home loan interest rate you are offered to protect it from any changes on the way to closing day.
This is called a mortgage rate lock commitment, and you negotiate with the lender to get an interest rate offer locked in until closing day or the agreement's expiration date.
Your lender may charge a fee for this rate lock, and the rate is locked for a specific amount of time you and the lender agree to. The lock is not indefinite, and if your lock expires before closing day you may need to renegotiate the lock.
What to Remember
Talk to your participating lender about this option early in the loan research and planning process, but don’t expect the lender to offer you an indefinite lock.
Your agreement with the lender has a specific place and time in the process, and you won’t have access to it until the time is right.
Interest rate lock agreements are a standard part of doing business with an FHA loan or any other type of mortgage. No two lenders may have identical policies, so it’s smart to ask about the lender’s rate lock guidelines when comparing financial institutions to consider for your FHA mortgage.
------------------------------
RELATED VIDEOS:
Sometimes It Pays to Refinance
Don't Forget Your Closing Checklist
Monthly Payments Establish Good Credit
FHA Loan Articles
March 11, 2025Adding a co-borrower to your FHA is a way to offset fears that you won't qualify for the mortgage on your own. An FHA loan co-borrower with a more substantial financial profile may offset the primary borrower's weaknesses, demonstrating a reduced risk to the lender. But for an FHA loan, don't assume that one borrower with good credit scores can offset one with non-qualifying scores. We ask 20 questions about co-borrowing to help you better plan for your FHA loan.
March 10, 2025Even if you aren’t considering your home loan options right this second, it’s smart to know your options if you decide to pursue a new home later. To that end, using a mortgage calculator is a smart choice for setting some basic budgeting parameters as you plan your path toward home ownership. A mortgage calculator helps you plan for future financial scenarios, such as buying new or refinancing a current home.
February 27, 2025 Buying your first home can feel overwhelming, especially when you start hearing terms like "subprime mortgages" and "FHA loans." Understanding these options is crucial for making the right decision. Subprime mortgages are designed for borrowers with less-than-perfect credit histories. This might include past issues like late payments, loan defaults, or even bankruptcy...
February 26, 2025Buying your first home can be exciting, but the mortgage process often throws a curveball of unfamiliar terms. Here are answers to common questions first-time homebuyers have about mortgage jargon and terms.
February 18, 2025Mortgages typically require mortgage insurance and homeowners insurance. They are both key parts of your home loan but they serve very different functions. Do you know the differences between the two? Find out how ready you are to begin the process of buying your new house.
