Mortgage: When Is The Best Time To Apply This 2022?
Applying for a mortgage is one of the major decisions we make in our life. It usually takes 20-30 years to pay off a home loan. There are a lot of things to consider when getting a home mortgage. Such as a stable financial status to be able to pay the monthly dues. A secure job so you can be approved of a loan. Being able to save from mortgage rates may not look like a lot, but because it is long-term, a few dollars saved every month can be thousands of dollars in 30 years.
Months with Lowest Mortgage Rates
Looking at the trend for the past years, it can be said that there are months when mortgage rates are high and months when it is low. According to statistics, April seems to have the highest rates while December got the lowest. Just like other businesses, home loans mortgage rates are influenced by several factors. When the demand is high, mortgage rates rise, and when the demand is low, it drops.
Most homeowners put their homes on sale during spring. Therefore, many inventories are available during this season. Knowing this, most home buyers look out for houses around this time as well. During December or wintertime, not many people would tend to buy a house. During this festive season, the trend has been in buying gifts or going on vacation. Thus, not a peak time for home loans. This drives the mortgage rates to decrease. Although a decrease in mortgage rates may not look significant, like from 3.0% to 2.75% but multiplied over the years, this will definitely give thousands of savings.
Other Factors that Drive Mortgage Rates
It is also important to note that months of the year are not the only thing to consider in predicting the trend of mortgage rates. The economic performance and financial market are also important factors that affect mortgage rates.
In the past years, when the economy is doing great, mortgage rates are high. This is because most people are doing financially well and can afford to pay high rates. On the other hand, when the economy is thriving, mortgage rates go down. Most people are not in their best financial status to buy a house. Thus the demand for home loans goes down.
In summary, if you intend to buy a house, be on the lookout all the time. Consider all factors that might affect mortgage rates and get the best deal that you can have.