If you have been shopping for a home there are 3 important things you should know about mortgage interest rates today.

Fed Raised Rates And Mortgage Rates Went Down

You probably heard the Federal Reserve raised interest rates .75% in July. The Federal Reserve does not control mortgage interest rates. It seems counterintuitive, but when the Fed raised their rates mortgage interest rates actually went down. Mortgage interest rates had been over 6% back in June. As of August 2nd, we were seeing quotes for 30 Year Conventional rates near 5%.

Jumbo Rates Are Lower Than Conventional Rates

In the Austin area the loan limit for Conventional mortgages is $647,200. If you are borrowing more than that you would be getting a “Jumbo” mortgage. Typically, we see interest rates for Jumbo loans to be higher than Conventional mortgage interest rates, but right now the Jumbo rates are actually lower. That’s right, the more you borrow the lower the rate. Only in America! If you are thinking of moving up or purchasing a higher priced home be sure to use the correct interest rate.

Mortgage Interest Rates Have Been Volatile 

We have been seeing wild swings in mortgage interest rates lately with as much as .5% increase or decrease in a day. That means you have to stay in touch with your mortgage lender on a daily basis to keep up to date with the current rate for your situation. The mortgage interest rate surveys that are taken and publicized in the news are usually done on a Wednesday. When you see a news story about mortgage interest rates chances are that information is not up to date because they have been changing every week.

Kopa Real Estate is not a mortgage company. This article is for informational purposes only so you are aware of what is happening in the mortgage market. For specific interest rate quotes for your situation contact a mortgage company or if you don’t have one let us know and we refer you to a great local mortgage company.

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