Yesterday was not a good day for mortgage rates with the uneasy news that the Fed seems prepared to raise short-term interest rates sooner than expected. Stocks slipped and mortgage-backed-securities (the market that most directly affect mortgage rates) reacted with negative repricing. The net effect is that buyers hoping for lower borrowing costs can anticipate higher rates in the near term or be looking at higher closing costs (or a lower lender credit toward those costs, if applicable). A 4.375% 30 year conventional fixed rate is now being quoted for borrowers with excellent credit scores, +20% equity in their homes; able to pay all closing costs and at least one point. Any variation in these criteria translates into a rate that could be a bit higher. If your New Year Resolution is to buy a New Home (or Refinance) now is the time to get Pre-Approved and get a jump on the spring buying surge.
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