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Here are the latest mortgage rates – and how to get the lowest rate possible

By on May 20, 2022 0

Over the past few months, mortgage rates have been rising rapidly, and economists and real estate professionals aren’t predicting that will stop anytime soon.

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Lately, mortgage rates have tended to rise. Average 15-year fixed rates averaged 4.85%, down from 4.78% last week, according to the latest data from Bankrate. Meanwhile, rates on 30-year fixed-rate mortgages also rose, averaging 5.51% from 5.44% a week earlier. And some pros say we could see more increases down the line. (You can see the lowest fares you could qualify for here.)

What’s next for mortgage rates?

Over the past few months, mortgage rates have been climbing, and that may continue: Indeed, we spoke to six economists and real estate professionals and here’s what they predict will happen to rates. “Rates have already risen significantly since the start of the year, and they are on track to climb even higher by 2023. Although not guaranteed, rates of 6% or more are possible “, Jacob Channel, principal economic analyst at LendingTree, told MarketWatch Picks. But others say that rates could stabilize: “It’s even possible that rates will top in the next few weeks or months, then stay flat or even go down from there,” Robert Heck, Morty’s vice president of mortgages, told MarketWatch Picks.

You can see the lowest rates you could qualify for here.

Why are mortgage rates important?

Even 1% fluctuations can add up to tens of thousands of dollars over the life of a loan, so it can be important to lock in the lowest possible rate available to you. But if the rate you’ve managed to lock in isn’t as low as you’d hoped, that doesn’t mean you should put off buying the home, if you like it and can afford it, people say. pros – like trying to time the market and getting an even lower rate is never guaranteed.

How to get the lowest mortgage rate

Experts recommend getting quotes from 3-5 lenders to ensure you get the lowest mortgage rate. Take the time to understand the rates and terms of different lenders and choose the one that suits you best. Not only do lenders look at your credit score and financial accounts, but they also calculate the borrower’s debt-to-income ratio (DTI), a number you want to make sure is at or below 36%. To calculate your DTI, divide your monthly debt payments (mortgage, credit card payments, car, student or personal loans, child support) by your gross monthly income. If you are within the 36% threshold, your chances of being refused a mortgage decrease and, surprisingly, having a higher DTI number is the main reason borrowers are refused mortgages.