Housing News

Mortgage Rates Rise, But There Are Still Opportunities to Save

Homebuyers and homeowners hoping for some good news on the mortgage interest rate front are likely to be a bit disappointed, as rates rose for the fourth week in a row.

The increase is due to the ongoing conflict in Iran. But there are still opportunities to save money if you know where to look.

Rates averaged 6.46% for 30-year, fixed-rate loans in the week ending April 2, according to Freddie Mac data. That was up from 6.38% in the previous week, but down from 6.64% at this time last year.

Despite the increase in rates, homebuyers seeking affordability this spring are already capitalizing on market conditions.

Nationally, home list prices are falling. In March, they ticked down 2.2% year-over-year to a median $415,450 in March, according to Realtor.com data.

Additionally, the number of homes for sale is rising, up 8.1% annually in March, according to Realtor.com. That’s leading to some home sellers cutting their listing prices.

This presents buyers with an opportunity to save money on a home even as rates tick up, whether it’s through a reduced sales price, increased seller concessions, or even a mortgage rate buydown.

Another way that buyers can conserve dollars is by being thorough in their search for the right lender, as some lenders may offer lower rates than others.

“With spring homebuying season in full swing, aspiring buyers should remember to shop around for the best mortgage rate, as they can potentially save thousands of dollars by getting multiple quotes,” said Sam Khater, Freddie Mac’s Chief Economist, in a statement.

That advice applies to homeowners too, especially those who bought their home when mortgage rates were near 8%. They may be able to find a lower rate than they have now and save money by refinancing.