The Bond Market affects the pricing on fixed-rate mortgages. With unemployment figures holding steading, and jobs being added to the economy, bond yields are up and are putting pressure to mortgage lenders to move fixed-rates up.
If you're thinking about buying or selling a home in the next 4 months, one of the best ways to ensure that you'll get a five-year fixed rate below 4%, is to reset your pre-approval rate. You may also want to consider having a second opinion on your pre-approval considering that there will be major changes occurring to mortgage-lending starting on March 18th.
Not only does a mortgage pre-approval help you secure an interest rate for 120 days (4 months), it also can ensure that when you do find a house that there will be no issues with solidifying the mortgage-financing. Ensure that your mortgage professional has pulled a credit score and asked for income confirmation by way of an employment letter and pay stub. Credit score and income confirmation are necessary to issue a full pre-approval. Many banks are getting lazy and only pre-qualifying their customers, which can lead to problems when you've finally found a home.
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