Rising mortgage rates and what you can do to save today

Why you may be spending more than you need to be - and how we can help

Intro

Just fifteen months ago, interest rates were at their all time low. Today, Americans can expect increases in interest rates through the end of the year. An increase in mortgage rates typically results in a decrease in buyer demand, but interestingly, the sharp rise in mortgage rates has not significantly deterred consumer behavior yet. The housing market is still hot and Americans are spending up to 50% or $560 extra on their monthly mortgage compared to last year.

The situation

Consumers are paying more for gasoline, groceries, clothes, travel, and healthcare. Everything is more expensive than before, and the last thing consumers want to do is pay more on their mortgage than they have to. One of the best ways to secure the lowest interest rate that you can is to shop around with multiple lenders. The typical buyer sees around 2-3 lenders before submitting their pre-approval paperwork, and this is because the lending process is time consuming and the window for home-buying is small. But here’s the problem – buyers could be saving if they shopped at just one more lender. According to data from Freddie Mac and Bankrate, “Borrowers who got five rate quotes saved $2,914 — on average — with 80 percent of those shoppers who got five quotes saving between $2,089 and $3,904 in 2019.” One of the biggest worries about shopping around is how it affects your credit score. Credit bureaus recognize when you are shopping around for rates, so any inquiries in a 14-45 day period are generally treated as one inquiry. Whether you are a first time buyer or a current owner you can benefit from checking if your current rate is at its lowest.

Conclusion

Your time is valuable, let Sora shop around thousands of lenders even while you sleep so you can rest easy knowing you’re saving the most you can. Save yourself time and money by trying out Sora to see where you can be saving.