Will mortgage rates go down? It depends. Trying to time the market for the lowest rates is tough — instead, focus on what you can control.
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00:00In its March meeting for the second time in a row,
00:03the Federal Open Market Committee decided to leave our policy interest rate unchanged.
00:07So what does that mean if you want to buy a home, refinance a home, or take out a HELOC or home equity loan?
00:12I'll tell you.
00:13When the Fed changes interest rates, when it's really changing is the federal funds rate.
00:17The federal funds rate does not directly change mortgage rates, but it creates a ripple effect
00:22that affects the price you pay to borrow money for all kinds of things, including mortgages.
00:26But the federal funds rate is not the only factor that affects mortgage rates.
00:30Another big one is the economy.
00:32And there is a lot of economic uncertainty right now,
00:35which is why we've seen some volatility in mortgage rates in recent weeks.
00:38Overall, mortgages are still expected to ease at some point in 2025,
00:43but it's impossible to say how much or when.
00:46So let's zoom in on the mortgage rates available to you.
00:50These are affected by some factors that are out of your control, the economy,
00:54and some factors that are more personal, like your credit score, your down payment, and your existing debt.
01:00Right now, you can focus on the things that are in your control.
01:03Know your credit score and work on improving it.
01:05Pay off as much debt as you can.
01:07Save for a down payment.
01:09And make sure to shop around.
01:11Different mortgage lenders may offer different rates.
01:13And if you're a first-time homebuyer, look into programs in your state.
01:17Buying a home is rarely affordable, but mortgage rates don't have to stand in your way.
01:24U.S. Money Reserve