“Mortgage rates show no signs of dropping back to the historic lows seen early in the pandemic.” – Michaelle Bond, The Philadelphia Inquirer
Over the last year, mortgage rates have doubled. Average interest rates for the most popular long-term mortgages have doubled from 3.1% to 6.49%. According to the Mortgage Bankers Association, the median monthly mortgage payment nationwide rose to $2,012 in October, a new record high. Homeowners locked into lower mortgage rates are staying put, and the number of newly listed homes is down. While mortgage rates have doubled, homebuyers still want or need to purchase and have some options that can help them.
It’s essential to understand it is about more than just the rates. For example, a buyer may be attracted to a low rate but must realize that the rate comes with high upfront fees added to the closing costs. According to Julius S. Sharpe Jr., a Philadelphia-based senior CRA (Community Reinvestment Act) mortgage loan officer at Fulton Mortgage Company, depending on how a mortgage program is structured, you could have a program with a higher rate, but your monthly payment is lower.
Despite the increase, you still have opportunities. For example, special purchase programs could help. But first, it helps to know what to ask. Read the full Philadelphia Inquirer article by Michaelle Bond, “With mortgage rates almost doubled, here’s what could determine the rate that you’ll get.”
