Better Credit = Better Rates: Here’s What Your Clients Should Know
Your clients likely know their credit score plays a role in the mortgage process. But what they may not realize is that a higher score could help them qualify for a lower interest rate — potentially reducing their total borrowing costs over time.
No matter where your client’s credit score lands, I offer loan solutions that can meet a wide range of needs. Let’s connect to explore how I can help your clients secure competitive rates and close with confidence.
Mortgage rates edged up slightly this week, driven by growing concerns over the national debt and Moody’s May 16 downgrade of the U.S. credit rating from “Aaa” to “Aa1.” It’s the first time all three major credit agencies have removed the U.S. from the top tier, citing long-term fiscal challenges and rising interest costs.
The downgrade has added some short-term volatility to the market, but opportunities remain for well-prepared buyers and homeowners — especially as timing and strategy play a larger role in today’s environment.
Signs of a housing market adjustment are beginning to take shape. Inventory is up more than 30% compared to last year, pointing to a possible shift toward a more balanced market. With affordability tightening and demand cooling, the pace of home price appreciation appears to be slowing.
The Federal Reserve remained quiet between May 16 and 22, with no major announcements during the week. Attention is now turning to upcoming data and signals that may shape the Fed’s next steps.
Weekly Snapshot:
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Consumer Sentiment: 50.8
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Inflation Expectations: 3.6%
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Initial Jobless Claims: 227,000
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10-Year Treasury Yield: 4.58%
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Mortgage Applications: Down 5.1%
Despite recent headlines, the overall outlook remains steady. Market conditions continue to evolve, and those staying informed are well positioned to navigate what’s ahead with clarity and confidence.
Mortgage rates trended higher from the week before. Mortgage application submissions dropped two weeks ago. Continuing jobless claims rose while initial jobless claims dipped. Existing home sales decreased while new home sales surged in April. The revised building permits number for April reflected a decrease from the month before.
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Mortgage application submissions decreased 5.1% during the week ending 5/16. Both the Refinance Index and Purchase Index decreased 5%.
Continuing jobless claims were at a level of 1,903,000 during the week ending 5/10, which was an increase of 36,000 from the week before. Initial jobless claims were at a level of 227,000 during the week ending 5/17, which was a decrease of 2,000.
Building permits fell 4% in April, though it was still higher than the preliminary reading.
Existing home sales slipped -0.5% month-over-month in April. This fell below expectations, reaching a level of 4,000,000.
New home sales were at a seasonally adjusted annual rate of 743,000 in April, which a 10.9% increase from the month prior.
