As a Conejo Valley Realtor, you’ve probably heard a lot about mortgage rates recently. Headlines might mention last week’s Federal Reserve meeting and its impact on rates, but remember, the Fed doesn’t set mortgage rates.

Mortgage rates are influenced by various factors such as geo-political uncertainty, inflation, and the overall economy. Predicting when these factors will align to lower rates is challenging. That’s why trying to time the market is often not worthwhile. Focus instead on what you can control.

Influence Your Credit Score Your credit score significantly affects your mortgage rate. According to CNET, improving your credit score can help you secure a lower interest rate. Lenders use your score to determine your loan approval and interest rate, so maintaining a good credit score is crucial, especially now. Seek expert advice from a trusted loan officer to help improve your score.

Choose the Right Loan Type Different loans offer different terms for qualified buyers. The Consumer Financial Protection Bureau (CFPB) notes that conventional, FHA, USDA, and VA loans each have unique eligibility requirements and interest rates. Work with your real estate team to explore the options available to you.

Consider Your Loan Term Freddie Mac highlights the importance of your loan term, which is the duration to repay your loan before owning your home. Your loan term impacts your interest rate, monthly payments, and total interest paid over the loan’s life. Depending on your situation, the term can also affect your mortgage rate.

Bottom Line You can’t control the broader economy, but you can control certain aspects of your mortgage. Collaborate with a trusted lender to strategize around these controllable factors. By doing so, you might secure a lower mortgage rate even in today’s market.