You've probably been hearing a bunch about mortgage rates lately. Maybe you've noticed some news stories discussing the recent Federal Reserve meeting and its impact on rates. However, it's important to note that the Fed doesn't actually set mortgage rates, despite what those headlines might imply.

The reality is that mortgage rates are influenced by numerous factors, including geopolitical uncertainty, inflation, economic conditions, and others. Predicting when these factors will align to bring rates down can be quite challenging.

That's why it's usually not worth attempting to predict the market. There are too many factors involved that are beyond your control. The most effective approach is to focus on managing what you can control.

When it comes to rates, here's what you can control to turn your moving plans into reality.

Your Credit Score

Credit scores can have a significant impact on the interest rate you receive for your mortgage. According to an article from CNET, your credit score plays a key role in determining your mortgage rate.

“You can’t control the economic factors influencing interest rates. But you can get the best rate for your situation, and improving your credit score is the right place to start. Lenders look at your credit score to decide whether to approve you for a loan and at what interest rate. A higher credit score can help you secure a lower interest rate, maybe even better than the average.”
— CNET

It's crucial to keep a solid credit score at this time. Given the current rates, it's essential to take steps to secure the most favorable rate available. To enhance your score, seek guidance from your reliable loan officer for expert advice.

Your Loan Type

There's a variety of loans out there, each with its own terms for eligible buyers. According to the Consumer Financial Protection Bureau (CFPB):

“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.”
— Consumer Financial Protection Bureau (CFPB)

When collaborating with your team of real estate professionals, ensure you determine the options suitable for your situation and the types of loans for which you may be eligible.

Your Loan Term

When thinking about your loan, it's essential to also think about the loan term. Like loan types, there are various options to consider. According to Freddie Mac:

rephrase it in a conversational “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.”
— Freddie Mac

The length of your loan can also impact your mortgage rate, depending on your situation.

Bottom Line

Focus on what you can control, not what you can't. The broader economy is out of your hands, but you have power over the things within your control.

Work alongside a reputable lender to discuss actionable strategies that could positively impact your ability to secure the best possible interest rate, despite the current elevated rates. By approaching these factors strategically, you may increase your chances of locking in a lower rate.