Posted: 11/29/2016

The average 30-year-fixed mortgage rate increased in recent weeks to 3.94 percent.

This according to CNN Money, which also points out that rates this time last year were actually higher at 3.97 percent. According to ABC News, the lowest point for 30-year rates came in 2012 when they were at 3.31. Interest rates are based on the mortgage-backed security market, stock market, economic data, inflationary pressure and other national and international factors. So predicting where interest rates will go from here is uncertain.

If rates were to continue to rise, however, now may be the right time to lock in a rate on your new home. Homebuyers may want to purchase sooner rather than later also due to the fact that there is low inventory and it is a competitive market.

The decision to lock in a rate is one that should be made between the borrower and their loan officer as the timing could also depend on having a ratified contract.

Typically, a home buyer will have the option of locking in their rate in 30, 45, 60 or 90 days. It should be noted that typically, the longer the homebuyer waits, the higher the rate will be. Popular loan options include: 30-year fixed; 15-year fixed; Adjustable Rate Mortgage; FHA; VA; Jumbo/Non-conforming; and Interest Only. More information on these, can be found here.

The recommended first option in the home-buying process is to get information on the pre-approval process and to see if you qualify for a loan. We at Guarantee Mortgage can help guide you through the process. That’s why we encourage you to connect with a loan advisor. The consultation usually takes between 15 and 30 minutes. An advisor will answer your questions, talk to you about the mortgage options that make sense given your finances and find out if you qualify.

When you’re buying in a competitive market, timeliness matters. We at Guarantee Mortgage move fast and close fast, so ask your Loan Advisor what our current days-to-close is running.

*The views, articles, postings and other information listed on this website are personal and do not necessarily represent the opinion or the position of American Pacific Mortgage Corporation. For more information please visit our Disclosures page:  apmortgage.com/disclosures