With most homebuyers opting for a 30-year fixed-rate mortgage, your next home loan will be a part of your life potentially for decades. You understandably do not want to pay more than necessary for the loan. Even a small decrease in the interest rate could equate to tens of thousands of dollars or more in interest charges over the life of the loan.
Mortgage interest rates fluctuate for a variety of reasons, and it can be difficult to predict what they may do from day to day. However, a look at the historical interest rates reveals an interesting pattern. Through a review of the 30-year fixed interest rate over more than 30 years, December has historically had the lowest interest rates of the year. This may not be the most ideal time for a homebuyer to jump into the market and buy a home, but doing so could result in significant savings.
Likewise, there is a time of year when interest rates may be highest. This is a time when the housing market is very active and home loan applications are at their peak. If you apply for a loan in April or May, you could potentially have a higher interest rate than you would in December.
While it is interesting to look at what mortgage interest rates have historically done, it is important to know that other factors come into play. It is not possible to accurately predict what interest rates will do at any given time. With this in mind and with the Federal Reserve poised to make several rate hikes soon, it may make sense to start exploring your options today. When you are ready to learn about loan programs that may be suitable for your qualifications, contact the MortgageDepot origination team by phone or email.
Connect with one of our loan consultants to learn more.