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By: Ralph Dibugnara May 22, 2025 By: David McMillin 11/24/25 https://www.bankrate.com/mortgages/tips-for-first-time-home-buyers/?mf_ct_campaign=tribune-synd-feed&utm_content=syndication Key takeaways Before you start looking for homes, take time to evaluate your finances and improve your credit score. There’s a big difference between meeting the minimum credit score requirement and showing your lender a credit score well above 750. Remember to account for the variable expenses of owning a home, which include insurance, property taxes, maintenance and repairs. While sellers still have the edge in most parts of the country due to limited inventory, buyers are gaining more bargaining power. Work with an expert real estate agent to develop a negotiation strategy and score a better deal on your first home. If you’re still renting your place, the thought of buying a home can feel pretty overwhelming. A recent TD Bank survey of first-time homebuyers found that 64 percent of people who have never owned a home are concerned about affordability due to high mortgage rates. Despite those worries, nearly half are working to save up for a down payment. If you’re one of them, read on for some money-smart moves that can put you on the path to successfully buying a home. House hunting tips for first-time homebuyers 1. Check your credit (and work on it) The higher your credit score, the better the interest rate on your mortgage. Pull your reports Thoroughly understand where your credit stands by pulling a free copy of your report at AnnualCreditReport.com. It’s not a one-and-done free ticket, either; the site lets you pull your report every week without paying anything. It’s important to note that your credit report may look different depending on the credit bureau. There are three main credit reporting bureaus in the U.S.: Experian Equifax TransUnion It’s wise to look at all of your reports because you never know which report a lender will analyze. “Look for any errors or past-due accounts that might have gone to collections,” says Ralph DiBugnara, president of New York City-based Home Qualified, an online resource for homebuyers. “These liabilities can create roadblocks when you apply for a home loan. If anything is amiss, contact the creditor to see if you can sort it out.” Fix and then monitor your credit In addition to contacting a bureau if you spot any mistakes, follow these steps to keep your credit in the best shape possible: Pay down your credit card balances: Most lenders like to see a credit utilization ratio of 30 percent or less, according to Lindsey Shores, business development manager with SchoolsFirst Federal Credit Union. “For many people, this number is something they have to plan for and work to pay down to achieve,” she says. If you’re over that number, try to pay down your balances. Pay your bills on time: Follow this step whether you’re trying to buy a house or not — you can make or break your credit by making your payments on time every month. Take advantage of free credit monitoring tools: Many banks have free credit monitoring tools built into their mobile apps, giving you the ability to check your credit score easily and more frequently. “You’ll get notified if your credit score changes, or if there’s suspicious activity on your report,” says DiBugnara. 2. Nail down your budget When you’re building a budget to narrow your search for properties, don’t just think about how much house you can afford, but how much in recurring costs you can handle once you’ve purchased your home. Consider these key items: Principal and interest: This will be the bulk of your monthly payment, and if you take out a fixed-rate mortgage, this chunk will never change over the course of the loan. Homeowners insurance: How much you’ll pay to protect the property can vary widely. If you’re buying in an area with higher risks for flood, wildfire or other severe weather, you’ll need to be prepared for higher, ever-increasing premiums. Property taxes: Your property taxes will look different depending on the location, and, in most cases, will increase as your home’s value increases and/or your local government needs to raise them for their budget. HOA fees: If you’re looking at condos or homes in a homeowners association, ask how much you’ll pay each month in HOA fees. If you’re looking at buildings with a gym, pool and other amenities, these can get very steep. In addition to these expected expenses, it’s a good idea to put aside some money regularly for maintenance and unexpected repairs. “As a rule of thumb, I tell clients to prepare to spend 1 percent to 3 percent of the value of their homes each year on house [expenses],” says Steve Sivak, a certified financial planner and managing partner of Innovate Wealth. You might need to set aside more if the home you end up buying is older, bigger or has maintenance-heavy amenities, such as a pool. 3. Consider your needs and wants Finding the ideal location and address can take more time than you expect, so begin scouting neighborhoods early in the process. “Drive and walk around that area at different times of the day and night,” says Bill Golden, a Realtor and associate broker with Keller Williams Realty Intown. “This will help you get a feel for what you like and don’t like.” Along with pinpointing the neighborhood, now is a good time to narrow down your preferences for the home itself by considering these essential questions: What type of house are you looking for? What can you compromise on? What are the dealbreakers? Are you willing to look at older properties that may require some updates, or do you want a move-in-ready property? Think about what you like and dislike about where you currently live — that can help inform your list of needs and wants. 4. Get finances in place Regardless of income level, you should be able to document to potential lenders that you have a stable source of earnings. “Your income and how much you earn monthly will be scrutinized by lenders, who will look for a two-year employment history and want to see consistent income — whether you’re receiving a salary, hourly pay or are self-employed,” says Tom Hecker, a loan officer with Cherry Creek Mortgage. If you’re self-employed, be ready for closer scrutiny than someone getting a salary or hourly wage. In terms of your liquid funds and overall financial health, in addition to reviewing your credit report, mortgage lenders typically look at your bank statements from the last two months when assessing your application. If you plan to make any deposits into your checking or savings accounts from other assets — such as a down payment gift — do it before that 60-day window. This gives the funds time to “season.” And it’s best to avoid opening new credit accounts or loans, or racking up more debt, at this stage, DiBugnara adds. All those activities could possibly ding your credit report. Learn more: How to save for a down payment Tips for finding the right mortgage 5. Comparison shop mortgage lenders At this point, you should know what monthly payment you’re comfortable with, what areas you can afford and how much you can put down. Now it’s time to shop for a mortgage. Consider these factors: Comparison shop: Compare mortgage rates from at least three different types of lenders, as well as different types of mortgages. What others have to say: Read customer reviews for lenders online to get a sense of what the experience is like with individual lenders. Interactions with the lender: Even “in this market, you can find competitive rates and service, but you want to pay close attention to lenders’ responsiveness and communication,” says DiBugnara. The mortgage terms: It’s also a good idea to focus on not just the rates lenders quote you but also all the mortgage terms. What are the late fees? What are the estimated closing costs? Is there a prepayment penalty? If you’re able to get a mortgage with the bank where you already have accounts, will you get a better deal? Sometimes, it makes sense to choose a loan with a slightly higher rate if the other terms are more favorable overall. Learn more: Different types of mortgage lenders 6. Get preapproved Once you settle on a lender, get preapproved for a mortgage. This will require documentation of your income and finances, and organizing your paperwork in advance can help the process run smoothly. It will also prepare you for mortgage underwriting, which will require similar documentation. Unlike prequalification, which is a projected loan size you’ll be able to get, a preapproval is an official letter from a lender stating exactly how much it will loan to you. A preapproval will put you in a much stronger position when you’re making an offer on a house, and it will ease the process once your offer has been accepted and you’re actually applying for your loan. Preapprovals usually expire after 90 days, says DiBugnara, so ask your lender how long yours will be good for. If you’re a first-time homebuyer with significant debt or so-so credit, you might want to apply for a preapproval as soon as possible to identify issues to fix. “Once you have a preapproval in place, keep sticking to your budget and savings plan and continue to pay all debts on time,” says Hecker. “Try not to make any extraordinary purchases or take on extra debt, either.” 7. Look for down payment assistance There are many first-time homebuyer and down payment assistance programs, including at the local, regional and national level, that can help cover your down payment or closing costs. These aren’t for everyone, though. To score some down payment assistance, be prepared for these eligibility requirements: Earn less than a specific amount per year, which typically varies by location and household size Purchase a home that does not exceed a maximum amount, which can vary based on targeted and non-targeted areas Take out a loan offered in conjunction with the state housing authority These programs are typically limited to borrowers with an income below a certain level (based on location), and can impose a cap on the home’s price, too. Keep in mind that many of these programs have terms that stipulate you must live in the home for a certain period of time to qualify for forgiving the loan and/or avoiding a recapture tax penalty that can come into play if you sell the property earlier than expected and earn a profit. Often, your loan officer can provide info on the available programs and what you might be able to pair with your mortgage. Tips for buying your first home 8. Work with a real estate agent After you have your financing squared away and a preapproval letter in hand, your next step as a first-time homebuyer is to hire a real estate agent or Realtor. An experienced real estate agent who knows the area you’re looking to buy in especially well can advise you on market conditions and whether homes you want to make offers on are priced properly. Your agent can also identify potential issues with a home or neighborhood you’re unaware of, and go to bat for you to negotiate pricing and terms. You can start by asking friends, relatives or co-workers for referrals. Interview several prospective agents to get a feel for who may be a solid match in terms of personality and expertise. “Don’t just pick [an agent] blindly — make sure it’s someone who works in the general area you’re looking in and whom you feel comfortable with,” says Golden. Offerings “come up every day, and a good Realtor will be on top of that and get you to see new listings as soon as they become available.” 9. Negotiate with the seller Even when you see the home of your dreams, don’t be afraid to negotiate the price with sellers. While it’s difficult in red-hot real estate markets, some areas of the country are beginning to see more homes sell for less than the asking price. As you work to get a good deal, consider these bargaining tactics: Use comps to justify a lower offer. A low offer can offend a seller, so work with your agent to look at comps that justify why a seller should consider your terms. Did a nearby property with an additional parking spot recently sell for the same amount? Are there other similar homes with nicer amenities listed for less? Back up your bargaining with evidence from the rest of the market. Ask for concessions based on the home inspection report. Is some of the electrical wiring incorrect? Does the furnace seem like it’s nearing the end of its lifespan? Are the windows going to need to be replaced soon? If your home inspector uncovers some minor issues with the home, don’t be afraid to ask for concessions that will require the seller to cover a chunk of your closing costs. And if the inspector uncovers some major issues, be aggressive in your negotiations — and don’t be afraid to walk away from the deal altogether. Request a different closing timeline. Negotiating your home purchase isn’t just about money; it’s also about time. Depending on your needs, you can ask the seller for a closing date that gives you more or less time to get the deal done. For example, if you really want to avoid paying another month of rent, don’t be afraid to request that the seller be prepared to move out earlier. 10. Draw up a contract When you find a home and prepare to make an offer, work with a real estate attorney to spell out any conditions or situations that will allow you to walk away from the deal. These are known as contingencies, and they often include: Major issues with a home inspection Mortgage application denial A lower appraisal than the offer price If these terms are spelled out in writing with deadlines, you’ll have an out if the transaction doesn’t go as planned — and get your earnest money deposit back, too. Bottom line For a first-timer, buying a home can feel overwhelming and endless. But breaking down the process into steps and tackling them one at a time can help you stay focused and get the job done. Doing your research in advance and working with a trusted real estate agent can help you stay on track throughout the process. Keeping your finances steady and limiting other big-ticket purchases can also help you qualify for a loan and get into your first home.
By: Ralph Dibugnara May 15, 2025 In the dynamic landscape of New Jersey's real estate market, investors are continually seeking effective strategies to identify and secure profitable deals. A recent YouTube Short titled "NJ Real Estate Investing: Finding Deals in a Tough Market" offers insights into this very challenge. Understanding the Market Challenges New Jersey's real estate market presents unique challenges, including high property prices, competitive bidding, and limited inventory. These factors necessitate a strategic approach to identify undervalued properties and capitalize on investment opportunities. Strategies Highlighted in the Video While the video is brief, it emphasizes key tactics for navigating the tough market: Networking with Local Agents: Building relationships with real estate agents who have in-depth knowledge of local neighborhoods can provide early access to listings and off-market deals. Exploring Foreclosures and Auctions: Properties in foreclosure or available through auctions often present opportunities to purchase below market value. Direct Marketing to Property Owners: Reaching out directly to homeowners, especially those in distress or considering selling, can uncover potential deals before they hit the market. Analyzing Market Trends: Staying informed about local market trends, including price fluctuations and neighborhood developments, aids in making informed investment decisions. The Importance of Due Diligence Investors are reminded of the critical role due diligence plays in real estate investing. This includes thoroughly researching properties, understanding zoning laws, and assessing potential renovation costs to ensure profitability. Conclusion Navigating New Jersey's real estate market requires a combination of strategic networking, market analysis, and proactive outreach. By employing these tactics, investors can uncover valuable opportunities even in a competitive environment. For a visual overview and additional insights, you can watch the full video here: https://youtube.com/shorts/5q3Y0NO3piE?si=bE1xYNreP08Y2rlA
By: Ralph Dibugnara May 8, 2025 Youtube link: https://youtube.com/shorts/yFRkety94Sw?si=JDU4CgX64Wb2IF1- In today’s fast-paced and often unpredictable financial markets, knowing how to navigate investment decisions is more critical than ever. Whether you're just beginning your investment journey or have years of experience behind you, there are a few timeless principles that can help you stay grounded, avoid common pitfalls, and achieve long-term success. The viral YouTube Shorts video “What Investors Should Know” captures these principles in a short but powerful format. Here's a deeper dive into the key takeaways. 1. Embrace Market Volatility Market volatility is not something to fear—it's something to expect. The video reminds investors that price fluctuations are a natural part of the market cycle. While dips and spikes may cause emotional reactions, it’s important to avoid knee-jerk decisions. Successful investors understand that volatility often presents opportunities rather than threats. 2. Think Long-Term One of the most valuable pieces of advice in the video is the emphasis on long-term thinking. Trying to time the market or chase short-term gains often leads to disappointment and unnecessary risk. Instead, building wealth steadily over time—through patience, consistency, and discipline—is a more effective and sustainable strategy. Compounding returns reward those who stay invested. 3. Diversify Your Portfolio Risk management is a foundational element of smart investing, and diversification is a key strategy to achieve it. By spreading investments across different asset classes (stocks, bonds, real estate, etc.), you reduce your exposure to any single point of failure. As the video states, a well-diversified portfolio offers protection against volatility while still allowing for meaningful growth. 4. Keep Learning and Adapting Markets change. Economies shift. New technologies emerge. The best investors are students of the game—they stay curious, informed, and open to change. The video encourages a mindset of continuous learning: reading market trends, understanding global events, and being willing to adapt when necessary. Staying informed keeps you resilient and ready for what’s ahead. Final Thoughts The path to financial success doesn’t require perfect timing or advanced degrees—it requires clarity, discipline, and a commitment to the basics. As “What Investors Should Know” so effectively illustrates, embracing market cycles, focusing on the long haul, managing risk through diversification, and continuously educating yourself are the cornerstones of smart investing. For a quick dose of inspiration and insight, you can watch the original video here: Watch the Short.
By: Ralph Dibugnara May 8, 2025 By Julie Gerstein https://www.realtor.com/advice/finance/real-estate-investment-gold-bitcoin/ High mortgage rates are making it more expensive to buy a home right now—but many experts still believe that real estate beats out other investment opportunities. Despite that, many investors have been swept into the thrill of playing the markets or trying out new asset classes like art, cryptocurrency, classic cars, and even wine. If all of these options leave your head a bit scrambled about where to put your money, you’re not alone. Choosing an investment strategy requires considering your budget, time horizon, and risk appetite. It also depends on how much effort you’re willing to put into learning about the particular market. Some areas of investment, like art, require specialized knowledge while others depend on how much risk you’re willing to take. With real estate in particular, many homeowners are sitting on record-high equity, which can be used through a home equity loan or a HELOC to purchase an investment property, according to Hannah Jones, senior economic research analyst at Realtor.com®. “However, investing in real estate is not a slam-dunk in all markets as high home prices and elevated mortgage rates squeeze potential earnings. Investors, or homeowners looking to branch out into buying an investment property, should fully understand expected cost and expected income from a property, as well as the time horizon to see a profit,” she says. Here’s how real estate stacks up against other investments. Buying real estate Pros: Real estate values have grown at a slower pace than the S&P 500 on a year-over-year basis, but according to a Realtor.com analysis, real estate has seen an average five-year return of +26% since 1975. That’s nothing to sneeze at. Typical homeowners have also accumulated at least $147,000 in housing wealth in the past five years, according to the National Association of Realtors® in its latest quarterly report. “Traditional investments like 401(k)s, IRAs, and ETFs are great for passive growth, but real estate brings in a whole different level of wealth-building,” says Dan Reedy, a real estate investor and broker. Real estate is also a much more hands-on investment. “With real estate, you can actively influence your returns by making strategic upgrades or managing rental rates. Plus, real estate offers deductions—mortgage interest, depreciation—that can make a huge difference come tax season. It’s not just about growing wealth; it’s about growing wealth you can control,” he adds. Sara Levy-Lambert, vice president of growth at real estate management company RedAwning, adds that although real estate is not without risks, its “blend of passive income potential, stability, and the chance to build equity over time make it a solid choice for those looking to diversify beyond paper assets.” Cons: If you value liquidity and being able to access your funds at a moment’s notice, it’s probably not the right move for you. Buying and selling homes can take months—if not years—and can require a lot of upfront costs. “The biggest problem I see is that people have record equity in their home right now, more than they’ve ever had before. But that’s just a number on paper,” says Ralph DiBugnara, founder of real estate resource site HomeQualified. “You can’t really do anything with it unless you’re willing to take [money] out of the house, unless you’re willing to leverage it.” By that, DiBugnara means being able to leverage a home equity loan or home equity line of credit. Investing in real estate directly “gives you full control—you decide on tenants, renovations, and how it’s managed. But you also take on the costs and responsibilities that come with ownership,” says Jace Graham, CEO of Rising Phoenix Capital. Real estate investment trusts Pros: When you think of real estate investing, you’re likely picturing putting a down payment on a home and negotiating the terms of a mortgage. But if you can’t afford to build a personal portfolio of investment properties, that shouldn’t discourage you from buying into the market. Many do so by participating in real estate investment trusts, or REITs. REITs allow investors to buy shares in a real estate company. Their portfolios typically include a mix of residential and commercial properties. “You don’t own the property directly, so you’re hands-off, which is easier for most people,” Levy-Lambert says. “They’re also traded like stocks, making them more liquid. Just buy or sell whenever you want, without the management headaches.” The IRS requires REITs to pay out at least 90% of their income as dividends to shareholders, so investors have a steady flow of funds coming in. It’s also taxed as regular income. “In a nutshell, direct real estate gives you control and potential tax perks but requires more work and patience, while REITs offer easy, flexible access to real estate returns without the management hassle but are taxed a bit differently,” says Levy-Lambert. A REIT also might be a great place to start if you haven’t saved up enough for a down payment but want to make a steady return on the market. Cryptocurrency Pros: There’s big money to be made—or lost—in the cryptocurrency market at the moment. Bitcoin initially traded at $0.00099 in 2009, but today it’s over $88,000, and early investors who have held on have made many millions of dollars. Cons: Of course, investing in cryptocurrency comes with many risks. Aside from the many crypto-related scams, including the spectacular collapse of Sam Bankman-Fried‘s FTX, you might need nerves of steel to play in this market. “Cryptocurrencies are notoriously volatile, subject to speculation, and witness frequent bubbles and crashes,” says Harry Turner, founder of Sovereign Investor. “That’s why cryptocurrencies are really only suitable for individuals with a high-risk tolerance and an understanding of the underlying technology, which can be complex. Real estate doesn’t have this problem.” Gold Pros: These days, you can purchase gold stocks or ETFs, or buy the physical stuff—coins and gold bullion. If that’s what you’re into, you can even buy gold at Costco now. For some, nothing beats the security of owning a chunk of precious metal. Gold is a relatively stable asset. It’s less reactive and can be a good hedge against the volatility of the market. In the four years following the 2008 financial crash, the price of gold increased dramatically—in 2011 alone, by 32.8%. Cons: Though you can buy gold at Costco, you can’t sell it through the store. In fact, it’s fairly difficult to sell gold commercially—and you’ll have to do a fair bit of research to get a fair price. Let’s be real: Physical gold weighs a ton, and it’s not the easiest thing to move around. Plus, you’ll want to insure it, which will cost you additional money, and there are higher taxes on physical gold. So if you sell, you’ll have to pay a capital gains tax of up to 28% on any profit. (The typical capital gains on stocks and bonds is 20%.) Investing in other types of tangible assets Pros: Relatively niche markets allow investors to dig into the things they love, be it art, cars, or wine. Cons: There’s a high barrier to entry in some of these particular markets—not just financially, but in terms of knowledge. For example, the classic car collectible market is fairly exclusive, and as an investment category, it might not be very practical either, because every time you use one of these collectibles in your portfolio, you run the risk of lowering its value. Alternative assets can be exciting and sometimes profitable, but they come with extreme volatility. The wine market, for instance, is affected not just by the collector market but also by the agricultural outlook and weather conditions. These markets don’t necessarily move quickly, either. As interest ebbs and flows in different types of asset classes, so do potential moneymaking opportunities. “Look at crypto—bitcoin, for instance, went from $60,000 to $20,000 in under a year,” says Reedy. “The occasional blue-chip wine or NFT might pay off big, but real estate lets you sleep at night while building long-term wealth.” No matter what you choose to invest in, you should talk to your financial adviser about what types of investments are right for you.
By: Ralph Dibugnara May 5, 2025 Youtube link: https://youtube.com/shorts/UvTeKZkJWdc?si=FFRHsl5MNkxpaXrO In today’s gig economy, owning an Airbnb or short-term rental property has become a popular side hustle—and in some cases, a full-time business. Social media often showcases the glamorous side of hosting: beautiful properties, flexible income, and glowing guest reviews. But behind the scenes, the financial realities tell a more complex story. A recent YouTube Shorts video titled “How much does it COST to run an Airbnb/Rental Property” offers a quick yet valuable breakdown of the expenses every host should consider before diving into the short-term rental market. Let’s take a closer look at what it really takes to keep a rental property running smoothly—and profitably. The Core Expenses of Running a Short-Term Rental 1. Mortgage Payments For most property owners, the mortgage is the largest monthly expense. These payments include both the principal balance of the loan and the interest charged by the lender. Even if a property is fully paid off, owners still face property taxes and insurance costs. 2. Utilities Unlike traditional long-term rentals—where tenants typically cover utilities—Airbnb hosts are responsible for all essential services. Electricity, water, gas, trash removal, and high-speed internet are non-negotiables for today’s guests. During peak seasons or in properties with features like pools or hot tubs, utility bills can skyrocket. 3. Maintenance and Repairs Every property requires upkeep, but short-term rentals often experience more wear and tear due to frequent guest turnover. Routine maintenance includes lawn care, HVAC servicing, and pest control, while occasional repairs (a broken appliance, plumbing issues) can lead to unexpected costs. 4. Cleaning Services Cleanliness is paramount in the hospitality industry. After each guest checks out, the property must be thoroughly cleaned and reset. While some hosts manage this themselves, many hire professional cleaning services. Depending on the property size and location, cleaning fees can range from $50 to $200 or more per booking. 5. Property Management For hosts who prefer a hands-off approach, hiring a property management company is an option. These firms handle guest communications, check-ins, cleanings, and maintenance. However, convenience comes at a price: management fees typically range from 10% to 25% of the monthly rental income. 6. Insurance and Taxes Standard homeowners insurance often doesn’t cover short-term rentals. Specialized insurance policies designed for Airbnb hosts provide broader protection but come with higher premiums. Additionally, property taxes and, in some areas, occupancy taxes or licensing fees must be factored into the budget. 7. Guest Amenities and Supplies Modern travelers expect more than just a roof over their heads. Hosts must provide toiletries, fresh linens, coffee, and other amenities to enhance the guest experience. These supplies need regular restocking, adding to monthly operating costs. Beyond the Numbers: Profitability and Planning The video effectively highlights a crucial point: generating income from an Airbnb isn’t as simple as pocketing the nightly rate. Successful hosts carefully calculate both fixed and variable costs to determine their true profit margins. Moreover, profitability isn’t guaranteed year-round. Seasonal demand, local competition, economic fluctuations, and changes in platform policies can all impact occupancy rates and pricing power. Is Hosting Worth It? For many, the answer is yes—but only with realistic expectations and careful financial planning. Those who treat their short-term rental like a business, accounting for every expense and prioritizing guest satisfaction, are best positioned to turn a profit. As the YouTube Shorts video succinctly shows, understanding the full scope of operating costs is essential. Whether you’re a seasoned real estate investor or a first-time host, knowing what to expect can mean the difference between a rewarding venture and an expensive lesson.
By: Ralph Dibugnara May 1, 2025 By: Paul Centopani April 30, 2025 Mortgage rate forecast for next week (May 5-9) After last week's huge jump, mortgage rates drifted slightly downwards. The average 30-year fixed rate mortgage (FRM) dipped to 6.81% on Apr. 24 from 6.83% on Apr. 17, according to Freddie Mac. It marks 14 straight weeks below 7% for the average 30-year FRM. “Headlines rather than economic data have been the dominant drivers of day-to-day volatility in the stock, bond, and mortgage markets. Despite the noise, average mortgage rates ended up little changed compared to the previous week. The economic situation is rapidly evolving, making it hard to predict the direction of mortgage rates with any conviction," said Kara Ng, senior economist at Zillow Home Loans. Will mortgage rates go down in May? "The market awaits some clarity on economic policies — particularly tariff-induced trade wars — before rates can move strongly in either direction." -Rick Sharga, CEO at CJ Patrick Company Mortgage rates fluctuated significantly in 2023, with the average 30-year fixed rate going as low as 6.09% and as high as 7.79%, according to Freddie Mac. That range narrowed in 2024, with a spread of 6.08% to 7.22%. With the economy probably heading into a recession, we may have already seen the peak of this rate cycle. But if inflation rises, mortgage rates could uptrend. Of course, interest rates are driven by many factors and notoriously volatile, so they could change direction any given week. Experts from Realtor.com, First American, and others weigh in on whether 30-year mortgage rates will climb, fall, or level off in May. Expert mortgage rate predictions for May Ralph DiBugnara, founder at Home Qualified Prediction: Rates will decrease There has been much anticipation of lower mortgage rates, but we have yet to see any consistency of that happening. The stock market has been down, along with inflation and consumer spending. In most markets, these factors would signal downward mortgage rates. But currently there is lack of confidence in the Fed lowering and or changing their current stance. The results have been a higher 10-Year Treasury which, in turn, influenced higher mortgage rates. In May I believe we will see some slow movement lower, as some positive economic data this month could push the average 30-year fixed mortgage rates down to 6.75% and 6.375% for the 15-year fixed. Also, ARM loans have emerged again as options with lower rates that should be considered. The 7/1 Arm should land about 5.875%. Hannah Jones, senior economic research analyst at Realtor.com Prediction: Rates will decrease "Mortgage rates surged in April following the announcement of widespread tariffs early in the month. While rates remained elevated for much of the month, they began to decline toward the end, hinting at a potential return to pre-announcement levels. Looking ahead to May, rates are expected to ease further as markets find more stability. However, upcoming economic data—particularly the jobs report and inflation data—could spark renewed volatility if results deviate from expectations. The recent movement in mortgage rates reflect broader economic uncertainty, which has left many households concerned about job security and financial stability. A sustained, downward trend in rates could help rebuild consumer confidence and encourage more buyers to re-enter the housing market." Sam Williamson, senior economist at First American Prediction: Rates will moderate “Mortgage rates are expected to remain in the mid-to-upper 6% range in May, amid ongoing worries over tariff-induced inflation and a softening in both business and consumer sentiment. Most market watchers anticipate that the Federal Reserve will hold rates steady at May’s Federal Open Market Committee meeting. Although the Fed does not set mortgage rates directly, its policy decisions affect borrowing costs indirectly through their impact on bond yields. "Significant attention will be focused on Fed Chairman Jerome Powell’s remarks during the FOMC press conference. Any comments made by the Chairman signaling a potential shift from the Fed’s current “wait-and-see” approach could sway bond yields: a more hawkish tone regarding inflation risks is likely to push rates higher, while dovish comments emphasizing employment concerns might ease them. Moreover, despite a seemingly resilient labor market amid ongoing federal restructuring efforts and slowed hiring amid policy uncertainty, any hint of weakness in the upcoming jobs report could increase recession fears—likely leading to lower bond yields and, in turn, reduced mortgage rates.” Diane Yu, CEO and co-founder at TidalWave Prediction: Rates will moderate "Mortgage rates, whether they linger between 6.4% and 6.6% or shift in May 2025, are merely one factor in a complex equation. Inflation, Federal Reserve actions, and global uncertainties undeniably influence rates, but true opportunity for homebuyers hinges on market dynamics, personal financial stability, and timing. Affordability isn’t dictated solely by rate fluctuations-it’s shaped by income growth, escalating home prices, and individual debt capacity. For households planning their next move, this means looking beyond rate forecasts and building resilience to market volatility." Mortgage interest rates forecast next 90 days As inflation ran rampant in 2022, the Federal Reserve took action to bring it down and that led to the average 30-year fixed-rate mortgage spiking in 2023. With inflation gradually cooling, the Fed made three rate cuts in 2024 (September, November, and December). Heading into 2025, many experts believed mortgage interest rates would gradually descend. Of course, rates could rise on any given week or if another global event causes widespread uncertainty in the economy. Mortgage rate predictions for 2025 The 30-year fixed-rate mortgage averaged 6.81% as of Apr. 24, according to Freddie Mac. Four of the five major housing authorities we looked at predict 2025's second quarter average to below that. Wells Fargo sits at the low end of the group, projecting the average 30-year fixed interest rate to settle at 6.35% for Q2. Meanwhile, the Mortgage Bankers Association had the highest forecast of 7%. Housing Authority 30-Year Mortgage Rate Forecast (Q2 2025) Wells Fargo 6.35% National Association of Realtors 6.40% Fannie Mae 6.50% National Association of Home Builders 6.66% Mortgage Bankers Association 7.00% Average Prediction 6.58% Current mortgage interest rate trends Mortgage rates decreased from the previous week. The average 30-year fixed rate declined to 6.81% on April 24 from 6.83% on Apr. 17. Meanwhile, the average 15-year fixed mortgage rate went to 5.94% from 6.03%. Stay on top of mortgage rate trends Get updates on mortgage rate news, low and no-down payment mortgage options, and more! Top of Form Subscribe Bottom of Form Month Average 30-Year Fixed Rate April 2024 6.99% May 2024 7.06% June 2024 6.92% July 2024 6.85% August 2024 6.50% September 2024 6.18% October 2024 6.43% November 2024 6.81% December 2024 6.72% January 2025 6.96% February 2025 6.84% March 2025 6.65% April 2025 6.73% Source: Freddie Mac After hitting record-low territory in 2020 and 2021, mortgage rates climbed to a 23-year high in 2023 before descending somewhat in 2024. Many experts and industry authorities believe they will follow a downward trajectory into 2025. Whatever happens, interest rates are still below historical averages. Dating back to April 1971, the fixed 30-year interest rate averaged around 7.8%, according to Freddie Mac. So if you haven’t locked a rate yet, don’t lose too much sleep over it. You can still get a good deal, historically speaking — especially if you’re a borrower with strong credit. Just make sure you shop around to find the best lender and lowest rate for your unique situation. Which mortgage loan is best? The best mortgage for you depends on your financial situation and your goals. For instance, if you want to buy a high-priced home and you have great credit, a jumbo loan is your best bet. Jumbo mortgages allow loan amounts above conforming loan limits, which max out at $806,500 in most parts of the U.S. On the other hand, if you’re a veteran or service member, a VA loan is almost always the right choice. VA loans are backed by the U.S. Department of Veterans Affairs. They provide ultra-low rates and never charge private mortgage insurance (PMI). But you need an eligible service history to qualify. Conforming loans and FHA loans (those backed by the Federal Housing Administration) are great low-down-payment options. Conforming loans allow as little as 3% down with FICO scores starting at 620. FHA loans are even more lenient about credit; home buyers can often qualify with a score of 580 or higher, and a less-than-perfect credit history might not disqualify you. Finally, consider a USDA loan if you want to buy or refinance real estate in a rural area. USDA loans have below-market rates — similar to VA — and reduced mortgage insurance costs. The catch? You need to live in a ‘rural’ area and have moderate or low income to be USDA-eligible. Mortgage rate strategies for May 2025 Mortgage rates displayed their famous volatility throughout 2024. Fed cuts in September, November, and December, with the potential for more in 2025 provide optimism for descending rates. Previously, the central bank held off on a rate hike at eight consecutive meetings, preferring to see if the economy would keep cooling organically. They finally deemed inflation's downtrend as organic and made its first cuts since 2020. Find your lowest mortgage rate. Start here (May 1st, 2025) However, ongoing inflation battles forced the Fed to hold in January and March. As always, the committee said it would adjust its policies as necessary — which could mean additional cuts or possibly none at all. Here are just a few strategies to keep in mind if you’re mortgage shopping in the coming months. Be ready to move quickly Indecision can lead to failure or missed opportunities. That holds true in home buying as well. Although the housing market is becoming more balanced than the recent past, it still favors sellers. Prospective borrowers should take the lessons learned from the last few years and apply them now even though conditions are less extreme. "Taking too long to decide to make an offer can lead to paying more for the home at best and at worst to losing out on it entirely. Buyers should get pre-approved (not pre-qualified) for their mortgage, so that the seller has some certainty about the deal closing. And be ready to close quickly — a long escrow period will put you at a disadvantage. And it's definitely not a bad idea to work with a real estate agent who has access to "coming soon" properties, which can give a buyer a little bit of a head start competing for the limited number of homes available," said Rick Sharga. If mortgage rates continue on a downward trajectory, more and more buyers will likely enter the market after being priced out on the sidelines. Being decisive (and prepared) should only play to your advantage. Shopping around isn't only for the holidays Since interest rates can vary drastically from day to day and from lender to lender, failing to shop around likely leads to money lost. Lenders charge different rates for different levels of credit scores. And while there are ways to negotiate a lower mortgage rate, the easiest is to get multiple quotes from multiple lenders and leverage them against each other. “For potential home buyers, it’s important to get quotes from multiple lenders for a mortgage, as rates can vary dramatically, especially during such a volatile period," said Odeta Kushi. As the mortgage market slows due to lessened demand, lenders will be more eager for business. While missing out on the rock-bottom rates of 2020 and 2021 may sting, there’s always a way to use the market to your advantage. How to shop for interest rates Rate shopping doesn’t just mean looking at the lowest rates advertised online because those aren’t available to everyone. Typically, those are offered to borrowers with great credit who can put a down payment of 20% or more. The rate lenders actually offer depends on: Your credit score and credit history Your personal finances Your down payment (if buying a home) Your home equity (if refinancing) Your loan-to-value ratio (LTV) Your debt-to-income ratio (DTI) To figure out what rate a lender can offer you based on those factors, you have to fill out a loan application. Lenders will check your credit and verify your income and debts, then give you a ‘real’ rate quote based on your financial situation. You should get three to five of these quotes at a minimum, then compare them to find the best offer. Look for the lowest rate, but also pay attention to your annual percentage rate (APR), estimated closing costs, and ‘discount points’ — extra fees charged upfront to lower your rate. This might sound like a lot of work. But you can shop for mortgage rates in under a day if you put your mind to it. And shaving just a few basis points off your rate can save you thousands. Compare mortgage and refinance rates. Start here (May 1st, 2025) Mortgage interest rate FAQ What are current mortgage rates? Current mortgage rates are averaging 6.81% for a 30-year fixed-rate loan and 5.94% for a 15-year fixed-rate loan, according to Freddie Mac’s latest weekly rate survey. Your individual rate could be higher or lower than the average depending on your credit score, down payment, and the lender you choose to work with, among other factors. Will mortgage rates go down next week? Mortgage rates could decrease next week (May 5-9, 2025) if the mortgage market takes a cautious approach to a possible recession. However, rates could rise if lenders account for the Federal Reserve taking measures to counteract inflation or if a global event brings economic uncertainty. Will mortgage interest rates go down in 2025? If inflation continues to dissipate and the economy cools or goes into a recession, it's likely mortgage rates will decrease in 2025. Although, it's important to remember that interest rates are notoriously volatile and are driven by many factors, so they can rise during any given week. Will mortgage interest rates go up in 2025? Mortgage rates may rise in 2025. High inflation, strong demand in the housing market, and policy changes by the Federal Reserve in 2022 and 2023 all pushed rates higher. However, if the U.S. does indeed enter a recession, mortgage rates could come down. What is the lowest mortgage rate right now? Freddie Mac is now citing average 30-year rates in the 7% range. If you can find a rate in the 5s or 6s, you’re in a very good position. Remember that rates vary a lot by borrower. Those with perfect credit and large down payments may get below-average interest rates, while poor-credit borrowers and those with non-QM loans could see much higher rates. You’ll need to get pre-approved for a mortgage to know your exact rate. Will there be a housing crash? For the most part, industry experts do not expect the housing market to crash in 2025. Yes, home prices are over-inflated. But many of the risk factors that led to the 2008 crash are not present in today’s market. Low inventory and massive buyer demand should keep the market propped up. Plus, mortgage lending practices are much safer than they used to be. That means there’s not a subprime mortgage crisis waiting in the wings. What is the lowest mortgage rate ever? At the time of this writing, the lowest 30-year mortgage rate ever was 2.65%. That’s according to Freddie Mac’s Primary Mortgage Market Survey, the most widely used benchmark for current mortgage interest rates. Should I lock my rate now or wait? Locking your rate is a personal decision. You should do what’s right for your situation rather than trying to time the market. If you’re buying a home, the right time to lock a rate is after you’ve secured a purchase agreement and shopped for your best mortgage deal. If you’re refinancing, you should make sure you compare offers from at least three to five lenders before locking a rate. That said, rates are rising. So the sooner you can lock in today’s market, the better. Is now a good time to refinance? That depends on your situation. It’s a good time to refinance if your current mortgage rate is above market rates and you could lower your monthly mortgage payment. It might also be good to refinance if you can switch from an adjustable-rate mortgage to a low fixed-rate mortgage; refinance to get rid of FHA mortgage insurance; or switch to a short-term 10- or 15-year mortgage to pay off your loan early. Is it worth refinancing for 1 percent? It’s often worth refinancing for 1 percentage point, as this can yield significant savings on your mortgage payments and total interest payments. Just make sure your refinance savings justify your closing costs. You can use a mortgage calculator or speak with a loan officer to crunch the numbers. How do I shop for mortgage rates? Start by choosing a list of three to five mortgage lenders that you’re interested in. Look for lenders with low advertised rates, great customer service scores, and recommendations from friends, family, or a real estate agent. Then get pre-approved by those lenders to see what rates and fees they can offer you. Compare your offers (Loan Estimates) to find the best overall deal for the loan type you want. What are today’s mortgage rates? Mortgage rates are rising, but borrowers can almost always find a better deal by shopping around. Connect with a mortgage lender to find out exactly what rate you qualify for.
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