When buyers rule out homes that need a few updates, their options can shrink fast. A renovation loan may help them finance the purchase and improvements together, so they can consider more homes with good bones.
When a client likes the home but not every detail, I can help you walk them through how financing the updates could work before they move on.
Mortgage rates increased this week amid rising oil prices, new inflation concerns and uncertainty about the Federal Reserve’s next move.
Oil climbed as the conflict with Iran continued, and higher oil prices can affect more than what we pay at the pump. It can also raise shipping costs and the price of many everyday goods. If those costs stay high, inflation can take longer to cool, giving mortgage rates less room to improve.
For buyers and homeowners, that can change your monthly payment or the potential savings from refinancing—even when the home price or loan amount stays the same.
The Fed also stayed cautious this week and gave no clear sign that lower rates are close. A rate quote or pre-approval from a few weeks ago may no longer match today’s payment, so it’s important to work from updated numbers.
Initial jobless claims fell to 187,000, which suggests layoffs remain low and the job market is still steady. That’s good news for workers, but it also gives the Fed less reason to lower rates quickly.
