Just as home buyers were offered some hope, mortgage rates are on the rise again. It was only a couple of weeks ago that the rates had begun dropping below 6% for the first time in years. Now the war and high oil prices have increased fears of worsening inflation and caused mortgage rates to rise. 

Many people believe the Federal Reserve controls mortgage rates but that isn’t true, private lenders do. The rates are impacted by decisions made by the Fed, the economy, Government policies, and events abroad. Right now, private lenders are worried about the situation overseas. Who isn’t. No one knows how long this war could last or what impact it could have on the U.S. economy. It’s early days yet the effects have been widely felt not just here at home but around the world. 

Home buyers who were in the process of buying a home but had not yet locked in a rate would be wise to do so as soon as possible. If the rates are anything like the gas prices, the increases will be significant. Currently a 30-year fixed is 6.34% with an APR of 6.49%. Grab that rate while you can or consider putting homebuying on the backburner for now. That is, if you are trying to watch your spending. 

Other ways to save money would be to join a warehouse club like Costco or Sam’s for reduced prices at the pump. Use a budgeting app to track expenses. Become diligent at comparing prices. And watch your energy usage at home. At Alloy Wealth, our team of financial professionals are always here to answer any questions you may have. Call 800-689-3935 to schedule an appointment.