Mortgage rates have been moving up and down lately. If you’re planning to buy, that can make timing feel uncertain.
But here’s the part that matters.
You don’t need perfect timing to make a smart move. You just need to focus on what you can control.
Let’s break it down.
Mortgage Rate Volatility Is Normal
Data from Freddie Mac shows how much rates have been shifting. After trending lower for over a year, rates ticked up again this month (see graph below):
This kind of movement isn’t unusual.
Even within the past year, rates have gone through similar short-term increases. What we’re seeing now is part of that normal cycle.
And when there’s economic uncertainty or global tension, changes like this tend to happen more often.
As Investopedia explains:
“Mortgage rates don’t move in isolation. When global events inject uncertainty into financial markets . . . that can ripple through to borrowing . . . mortgage costs can respond quickly to geopolitical developments. As long as uncertainty remains elevated, rate swings may continue.”
That’s why trying to “wait for the perfect rate” usually doesn’t work.
What You Can Control Right Now
You can’t control the market. But you can control how strong your position is when you apply.
Here are three areas that make a real difference.
Your Credit Score
Your credit score directly affects the rate you’re offered.
Even a small increase can lower your monthly payment and improve your loan terms.
As Bankrate puts it:
“Your credit score is one of the most important factors lenders consider when you apply for a mortgage. Not just to qualify for the loan itself, but for the conditions: Typically, the higher your score, the lower the interest rates and better terms you’ll qualify for.”
If you’re unsure where you stand, talk to a lender and ask what steps can improve your score before you apply.
Your Loan Type
There are also different types of home loans – and each one can have unique requirements, benefits, and rates for qualified buyers.
The Consumer Financial Protection Bureau (CFPB) explains:
“There are several broad categories of mortgage loans, such as conventional, FHA, USDA, and VA loans. Lenders decide which products to offer, and loan types have different eligibility requirements. Rates can be significantly different depending on what loan type you choose.”
That’s why it’s so important to explore your options with a lender. You may even want to talk to multiple lenders to see how the options vary.
Your Loan Term
The length of your loan matters too. Most lenders typically offer 15, 20, or 30-year loans. Freddie Mac offers this advice:
“When choosing the right home loan for you, it’s important to consider the loan term, which is the length of time it will take you to repay your loan before you fully own your home. Your loan term will affect your interest rate, monthly payment, and the total amount of interest you will pay over the life of the loan.”
Again, to figure out what makes the most sense for your budget and long-term goals, have a lender walk you through all your options.
Bottom Line
You can’t control where mortgage rates go next. But you can control how prepared you are.
Focus on your credit, explore your loan options, and choose a term that fits your goals.
If you’re ready to make a move, the best strategy is simple. Control what you can. Ignore what you can’t.
The information and opinions in this article are not investment advice. Tim Stice makes no guarantees about accuracy or completeness. Always do your own research and consult a professional before making financial decisions. Tim Stice is not liable for any loss or damage resulting from reliance on this content.
Tim Stice, Broker Realtor | Hawaii Life | Maui, Hawaii | Real Estate Agent
