Everyone shopping for a mortgage hopes to get the best mortgage rates. However, many different factors can affect mortgage rates, making it more difficult for borrowers to find the best deal. One of the most important factors affecting mortgage rates is the state of the market.

Mortgage Rate Predictions for 2016

At the beginning of 2016, mortgage experts predicted that mortgage rates would climb throughout the year. In fact, the Fed promised to hike rates during 2015, but their plan changed because of problems in the U.S. economy. As a result, rates have remained near historic lows throughout the first half of 2016. Nonetheless, many market experts are still predicting an increase in the near future, especially if the Fed makes a move to increase interest rates during the meeting scheduled for mid-June.

It is important to note that the market isn’t the only factor that may affect your interest rate. Interest rates also depend on your credit history, the loan program you choose and the rates your lender offers. However, the market’s impact is significant.

Taking Action

If the experts’ predictions turn out to be true, mortgage interest rates may be on the rise soon. Home buyers and people planning to refinance their current home loans should act quickly if they want to take advantage of the best mortgage rates while they last. Otherwise, borrowers will pay more than they need to for their loans.

If you are planning to buy or refinance a home in the near future, consider beginning the application process now before the interest rates increase. Keep in mind that if you are buying a new home, most lenders require you to have a closing date scheduled within a specific period of time before you are able to “lock in” your interest rate, so time is of the essence. To get started with your home loan application, please contact Starboard Financial today. With offices in Arizona and Illinois, and loan officers licensed throughout the United States, we are here to help you find the best mortgage rates for your home loan.