Why a mortgage rate lock makes sense this September
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TL;DR
- The average 30-year mortgage interest rate is 6.87% as of September 1, a significant increase from six months prior.
- There is a 66% chance the Federal Reserve will hike interest rates at its September 16 meeting.
- Locking in a rate now can protect buyers from potential rate increases, with the option to unlock or refinance if rates fall before closing.
- Lenders may increase rates before the Federal Reserve officially does, especially if economic reports indicate further inflation or a need for rate hikes.
- A September rate hike could signal the start of a new series of increases, making it prudent to secure a rate now.
- Locking in a rate provides budget certainty for homebuying plans.