Homebuyers Can Cut Mortgage Rates Below 6% as 30-Year Average Hovers Near 6.5%
Updated
Updated · CBS New York · Jun 1
Homebuyers Can Cut Mortgage Rates Below 6% as 30-Year Average Hovers Near 6.5%
1 articles · Updated · CBS New York · Jun 1
Three tactics could help qualified buyers beat June’s roughly 6.5% average 30-year mortgage rate and secure loans below 6%, even as borrowing costs stay stubbornly high.
Shopping at 3 to 5 lenders is the simplest route, because banks, credit unions, online lenders and brokers price loans differently and may offer sub-6% rates to win business.
Adjustable-rate mortgages such as 5/1, 7/1 and 10/1 ARMs can start below 6%, though payments may rise later if rates remain elevated after the fixed period ends.
Discount points can also push a 6.25% quote to 5.99% or lower; each point typically costs 1% of the loan amount and trims about 0.25 percentage point.
The options matter more as inflation reduces the odds of near-term Federal Reserve cuts, keeping relief on standard fixed mortgage rates slower than many buyers expected.