- The economy: Mortgage rates tend to be lower when the economy is strong and higher when the economy is weak.
- The Federal Reserve: The Federal Reserve sets the federal funds rate, which affects all other interest rates, including mortgage rates.
- The bond market: Mortgage rates are also affected by the bond market. When bond yields are high, mortgage rates tend to be high.
- Your credit score: Your credit score is a major factor in determining your mortgage rate. A higher credit score will qualify you for a lower interest rate.
- Your down payment: The size of your down payment will also affect your mortgage rate. A larger down payment will lower your interest rate.
Steps to Get Pre-Approved for a Mortgage
The first step to getting a mortgage is to get pre-approved. This will give you a good idea of how much you can afford to borrow and will make the home buying process smoother. To get pre-approved, you’ll need to provide the lender with information about your income, assets, and debts.
Tips for Saving for a Down Payment
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