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Mortgage interest rates just fell to an 11-month low last week and they are likely to continue to fall in the weeks ahead.
With a Federal Reserve rate cut all but a certainty now (the dispute lies over how much the central bank will cut,not if),homebuyers who have been sitting on the sidelines may want to prepare to re-enter the market. but with the average mortgage interest rate at 6.50% for 30-year terms, rates are far from where they were a few years ago, when many buyers locked in rates in the 3% range (or lower). And a cut when the Fed finishes its next meeting on september 17 will likely have a minimal impact on rates, even if it will help push them down overall.
Fortunately, there are multiple ways in which buyers can secure below-average rates. An adjustable-rate mortgage (ARM) is one of them. With this unique loan structure, buyers secure a lower-than-average rate right now before it adjusts to a new one in a few years. While this can be risky for some buyers, others may find it to be the perfect way to take advantage of today’s cooling mortgage rate surroundings. But is it worth pursuing this September? Below, we’ll break down three big reasons why it may be.
Start by seeing how low your current mortgage rate offers are hear.
Is an adjustable-rate mortgage worth it this September?
Unlike some other borrowing products, an adjustable-rate mortgage doesn’t mean that your rate will constantly fluctuate.