February 5, 2023

When scanning rates, be aware that things likely are worse than they appear.
Advertising Disclosure: When you buy something by clicking links on our site, we may earn a small commission, but it never affects the products or services we recommend.

Anyone looking to buy a home probably shudders every time they see mortgage rates tick higher. Unfortunately, things are likely even worse than they appear.
The mortgage rates that you see quoted in the news — which in mid-September climbed to more than 6% for a 30-year loan — can sometimes be a best-case scenario. As The Wall Street Journal reports, many borrowers are likely to pay an even higher rate on their own mortgage.
The newspaper notes that a widely quoted survey from Freddie Mac — the government-sponsored mortgage-loan company — gathers numbers in a way that cannot quite capture fast movements in the mortgage market.
As an example, the WSJ notes that many borrowers have been encountering mortgage rates of 6% or more as far back as June.
Todd Hanley, a Boca Raton, Florida-based loan partner at CrossCountry Mortgage LLC, tells the WSJ:
“If you have a really volatile rate — and mortgage-rate volatility is historically high right now — by the time the survey comes out it can be grossly inaccurate.”
Even when you see a mortgage rate advertised on a lender’s website, you probably should take it with a grain of salt. Quicken Loans notes that buyers might get a different mortgage rate than what they see on the website for several reasons, including:
So, don’t expect that you will pay the rates you hear about. But don’t panic, either.
Instead, take matters into your own hands by shopping around and comparing rates. That is the best way to ensure you get the lowest rate possible for your situation.
If you are looking for a mortgage, stop by our Solutions Center and compare mortgage rates.
  Like Article   Add a Comment
Simple ways to make, save, and grow your money daily:
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
Every week our podcasts bring you lively money discussions that will give you a few laughs along with advice that will make you richer.
Money with Stacy Johnson
Listen/Subscribe
Some of our favorite stories for you to read next.
Join our free newsletter subscribers building wealth and destroying debt:
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
Do Not Sell My Personal Information
© 2022 Money Talks News. All Rights Reserved.
‭1 (833) 669-8557 | 1732 1st Ave #26661, New York, NY 10128

Advertising Disclosure: This site may be compensated in exchange for featured placement of certain sponsored products and services, or your clicking on links posted on this website.
Help us produce more money-saving articles and videos by subscribing to a membership.
Get Started
Help us produce more money-saving articles and videos by subscribing to a membership.
Our Policy: We welcome relevant and respectful comments in order to foster healthy and informative discussions. All other comments may be removed. Comments with links are automatically held for moderation.
Please enable JavaScript to view comments.
Join happy subscribers and sign up for our free newsletter! You’ll get:
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

source

Leave a Reply