Home Loan Rates Today
With interest rates seasonally low over the summer months, home loan rates today will most likely level off as September draws closer. Summer is great for real estate because that’s when the kids are on break and it is more easy for families to relocate from one home to another without disrupting the school schedule. This makes for a lot of buyer activity during the summer. As of today, August 28, summer is coming to an end and the upcoming Labor Day holiday will unofficially mark the end of summer’s lower mortgage rates. So with things changing, let’s take a look a today’s mortgage rates analysis and plan for the months ahead.
Home Loan Rates Today
- 3.86% for 30-year fixed-rate
- 3.16% for 15-year fixed-rate
- 3.17% for 5/1 ARM loans
The Inflation Rate Affects Mortgage Rates
August 31 is a big day for mortgage rates and there may be some changes to look out for depending on what the Commerce Department decides to do regarding the Personal Consumption Expenditures Index (aka PCE price index).
The PCE price index basically measures inflation and the Fed uses this instrument to make certain adjustments to try and help the inflation rate stay around the 2% mark. We have been below that for several years so depending on what things look like on Thursday, market interest rates may change one way or the other. Folks at NerdWallet point out that the Fed is expected to make efforts to raise short-term interest rates so we’ll see what they decide to do.
The Employment Report Affects Mortgage Rates
The jobs report is another big deal to mortgage interest rates. When more people have jobs, interest rates can go up as buyers can better afford to pay banks that require greater return on lending. When unemployment is high, the market has less cash and therefore banks have to offer lower interest rates to keep loans accessible to buyers.
September 1, this Friday, is the day that the employment report gets released to the public. The employment reports considers variables such as the number of jobs, the unemployment rate, and wage inflation among others. This information, specifically, is the most relevant economic status information that will hit us now as we bid farewell to the summer months.
What This Means For Homebuyers
Whether you are a first time buyer or a real estate veteran, it’s a known fact that mortgage interest rates today may not necessarily be what they are tomorrow. Conventional and FHA home loan rates today will follow fluctuations in the market so it’s helpful to know what influences these changes.
Also, as a “buyer beware” statement, it is important to be mindful that unless you have fully sealed the deal with a home lender, you cannot assume that a quote or anything that has been discussed will be honored if the market changes and you haven’t already been able to “lock-in” your financing.
If you are a qualified buyer – meaning: your down payment is ready to go, you have your most recent credit scores, and you know what sort of home you’re looking for…
See what you can do to lock in today’s low mortgage rates with our free tool:
How Do I Get Current Mortgage Rates?
This almost sounds like a loaded question. It’s true that mortgage rates are always changing. They change literally all day as stocks and bonds are traded and noting that the stock market is subject to consumer sentiment (ie: human emotions) it is true that anything can change market pricing. Unless you actually lock in your conventional or FHA home loan rate, you should know that any rates your quoted today may increase or decrease, slightly or drastically.
It is always good to make sure that once you start the home loan process that you are ready to go… this saves you from wasting your realtors time and also helps avoid any headache that may come from a failed loan application that ends up losing you that dream house.
Be smart when you shop, get great advice from a real estate professional, and take it upon yourself to learn about the mortgage approval process.