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Buyers Should Shop for a Mortgage In Pensacola as Rates Rise

By Charles Stallions

Real Estate Broker/Owner with Charles Stallions Real Estate Services 610125

January 07, 2023 03:00 AM

Every dollar may help as housing affordability reaches a critical threshold. The typical U.S. household will no longer be able to afford a median-priced home when mortgage rates reach 5.7%, Nadia Evangelou, senior economist and director of forecasting for the National Association of Realtors® (NAR) predicted last week.

illustration of mortgage paperwork

By Melissa Dittmann Tracey

Our experts say borrowers stand to save from around $1,500 to $3000 by comparison shopping and gathering multiple quotes from lenders.

WASHINGTON – As mortgage rates surge and remain volatile, it’s becoming increasingly necessary for home buyers to shop around for a loan to find savings. According to Freddie Mac, borrowers potentially could save an average of $1,500 over the life of a loan by gathering one additional rate quote from a lender. And borrowers could save even more by gathering five different quotes from lenders—up to $3,000, Freddie Mac research shows.

This week, the 30-year fixed-rate mortgage pushed to an average of 5.89%. That means the typical household must now spend more than 25% of their income on mortgage payments, a level most financial experts consider to be cost-burdened, Evangelou notes.

“Mortgage rates rose again as markets continue to manage the prospect of more aggressive monetary policy due to elevated inflation,” says Sam Khater, Freddie Mac’s chief economist. “Not only are mortgage rates rising but the dispersion of rates has increased, suggesting that borrowers can meaningfully benefit from shopping around for a better rate.”

Freddie Mac reports the following national averages with mortgage rates every week. We shop so you don't have to so call or text us at 850-476-4494 for up to $5000. in matching funds.

30-year fixed-rate mortgages

15-year fixed-rate mortgages

5-year hybrid adjustable-rate mortgages

Freddie Mac reports commitment rates with average points to better reflect the total upfront cost of obtaining the mortgage.

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