QUESTION:
Draft an update on mortgage rates that I can send to my clients.
RESPONSE:
Subject: Current Mortgage Rate Update – June 2024
Dear [Client’s Name],
I hope this message finds you well. As part of our commitment to keep you informed on the latest trends in the housing market, I am providing an update on the current mortgage rates as of June 2024.
1. Stability in Mortgage Rates: As of the latest reports, mortgage rates have remained fairly steady. A competitive mortgage rate for a 30-year fixed loan currently ranges between 6% to 8%[1].
2. Recent Dip in Refinance Rates: If you are considering refinancing, now might be a good time to explore your options. The average rate for a 30-year fixed mortgage refinance is currently at 7.50%[2], showing a slight decrease from the previous week’s rate of 7.59%[3].
3. Factors Influencing Rates: It’s important to remember that several factors can affect mortgage rates, including your credit score, debt-to-income ratio, and the type of loan you are considering. Ensuring a good credit score and a low debt-to-income ratio can help you qualify for better rates[4].
4. Opportunity for Homebuyers and Sellers: The slight easing of rates could be a motivating factor for potential home sellers, possibly increasing the overall inventory in the housing market. This could be an opportune time to consider listing your home or entering the market as a buyer[5].
5. Refinancing Benefits: Refinancing could allow you to access your home’s equity or eliminate private mortgage insurance, potentially saving you money in the long term[6].
As always, our team is here to help you navigate these opportunities based on your personal financial situation and goals. Please feel free to reach out if you have any questions or need further clarification on how these updates might impact you.
Warm regards,
[Your Name]
[Your Contact Information]
[Your Company’s Name]
References
[1] Mortgage Rates Today: June 19, 2024—Rates Remain Fairly Steady [Forbes]
A competitive mortgage rate currently ranges from 6% to 8% for a 30-year fixed loan. https://www.forbes.com/advisor/mortgages/mortgage-rates-06-19-24
[2] Current Refinance Rates: June 19, 2024—Rates Dip [Forbes]
The average rate for refinancing a 30-year fixed mortgage is currently 7.50%, according to Curinos. https://www.forbes.com/advisor/mortgages/refinance/mortgage-refinance-rates-06-19-24
[3] Current Refinance Rates: June 19, 2024—Rates Dip [Forbes]
The current 30-year, fixed-rate mortgage refinance is averaging 7.50%, compared to 7.59% last week. https://www.forbes.com/advisor/mortgages/refinance/mortgage-refinance-rates-06-19-24
[4] Mortgage Rates Today: June 19, 2024—Rates Remain Fairly Steady [Forbes]
Home loan borrowers can qualify for better mortgage rates by having good or excellent credit, maintaining a low debt-to-income (DTI) ratio and pursuing loan programs that don’t charge mortgage insurance premiums or similar ongoing charges that increase the loan’s annual percentage rate (APR). https://www.forbes.com/advisor/mortgages/mortgage-rates-06-19-24
[5] Average long-term US mortgage rate falls again, easing to lowest level since early April
“While it’s unlikely for mortgage rates to fall below 4%, a rate around 6% could strongly motivate many sellers to list their homes, thereby increasing overall inventory and exert downward pressure on housing prices,” Xu said.
[6] Current Refinance Rates: June 19, 2024—Rates Dip [Forbes]
Refinancing also may help you access your home’s equity or eliminate private mortgage insurance (PMI). https://www.forbes.com/advisor/mortgages/refinance/mortgage-refinance-rates-06-19-24
