I wanted to take a moment to clear up some confusion about mortgage rates that I’ve seen floating around. If you’ve been hearing about rates dropping, it’s important to understand the full picture to avoid any surprises.

Whenever you hear about a specific rate, it’s essential to know that the actual cost of the loan may include points or other factors that affect the final rate. For example, a rate that seems very low, like 4.99%, may come with additional costs. It’s also required to mention the APR (Annual Percentage Rate), which includes those extra costs. Without that info, quoting a rate can be misleading.

Additionally, the Federal Funds Rate does not directly control mortgage rates. While it can influence them, mortgage rates are often adjusted by the industry well in advance of any Fed decisions.

If you’re ever unsure or need clarification on where mortgage rates are or how they could affect your buying process, I’d be happy to connect you with trusted mortgage professionals who can give you accurate, up-to-date information.

I’m here to guide you through the process every step of the way!

Alexander Wilson

540-621-1175