Longing for a new home, but deterred by mortgage interest rate?
With the Fed likely to increase interest rates, mortgage rates could move higher in the coming weeks amidst their highest level in nearly 2 years. Many speculators assume that this will result in less buyers. However, increasing rates are also indicative of a stronger economy and a stronger economy will favor more overall spending such as housing. It is important to keep some perspective with respect to nationwide upward trends in interest rates. In all real estate markets, income growth is a trigger for homeownership as well as other life events such as changes in the number of people in the household. There is also an expectation that more millennials will move into the Oxford housing market while rates are still historically low.
Explore your interest rate options
In addition to the traditional, large bank mortgage bankers, you may explore non-bank lenders. Many of these non-bank lenders are locally owned and family-run businesses serving a smaller region. These smaller lenders often face fewer federal regulations and still welcome borrowers with less-than-perfect credit. They have also offered FHA-backed lending options that many of the big banks have been avoiding.
Another local option are credit unions also. In 2015, credit unions originated more than 8% of U.S. mortgages. According to the CUNA Mutual Group, this amount is roughly double the number of loans originated in 2010.
Alternative mortgage lenders now account for almost half of all home loans, according to the Federal Reserve. This helps keep some interest rate competition in the mortgage market place. These alternative lenders are changing the mortgage loan process with faster approvals plus online application and document processing. and they are powering a more competitive market.
Need to shop for mortgage loan interest rates?
Check out bankrate.com. There you will find both local and national lending options. You can track interest rates and much more.