If you’ve been watching mortgage rates lately, you’ve probably noticed one thing—they’re all over the place. One day they dip slightly, and the next they rise again. For anyone thinking about buying a home, this kind of volatility can feel confusing and frustrating. But while you can’t control where rates are headed, there are things you can control to set yourself up for the best mortgage rate possible.
Why Mortgage Rates Are So Volatile Right Now
After a relatively steady March, mortgage rates have been on a roller coaster ride through April, according to Mortgage News Daily. This kind of movement is common during times of economic uncertainty. And it’s a reminder that trying to perfectly time the market is nearly impossible—especially when it comes to interest rates.
Instead of focusing on predicting the future, focus on what’s within your control as a buyer.
1. Boost Your Credit Score to Secure a Better Mortgage Rate
Your credit score is one of the biggest factors lenders consider when determining your mortgage rate. Even a small improvement could save you thousands over the life of your loan. As Bankrate explains:
“Typically, the higher your score, the lower the interest rates and better terms you’ll qualify for.”
If you’re not sure where your score stands or need help improving it, connect with a trusted loan officer to review your credit and build a plan.
2. Choose the Right Loan Type for Your Financial Goals
There isn’t a one-size-fits-all loan. From conventional loans to FHA, VA, and USDA programs, each option comes with different eligibility requirements and interest rates. According to the Consumer Financial Protection Bureau (CFPB):
“Rates can be significantly different depending on what loan type you choose.”
Working with a knowledgeable mortgage lender can help you compare options and find the best fit based on your income, credit, and homeownership goals.
3. Understand How Loan Terms Affect Your Rate and Monthly Payment
Your loan term (how long you take to pay off the loan) also impacts your mortgage rate and monthly payment. Most buyers choose from 15-, 20-, or 30-year terms. As Freddie Mac explains:
“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.”
Shorter loan terms often come with lower rates but higher monthly payments, while longer terms spread out your payments but typically include more interest paid over time.
Bottom Line
You might not be able to control mortgage rate fluctuations, but you can take steps to improve the terms you qualify for. By working on your credit, understanding your loan options, and selecting the right loan term, you can position yourself to get the best possible rate—no matter what the market’s doing.
Ready to make a smart move in today’s unpredictable market?
Connect with a trusted local real estate agent and mortgage lender to build your personalized homebuying strategy.