When it comes to financing a home in the current real estate market, the interest rate on a loan is of chief concern for buyers. That has resulted in a growing interest in rate locks from buyers, sellers, builders and lenders.

80%

Homeowners with a mortgage rate under 4%

In fact, rate locks as a negotiation technique have bubbled up to the surface as another tactic for lenders looking to secure loans in the current economy.

In Part 2 of this episode, host Maiclaire Bolton Smith continues the conversation with CoreLogic Principal Economist Molly Boesel to discuss what rate locks are, why they are trending in the housing market and what that may mean for lenders looking to retain or gain new business.

In This Episode:

1:31 – By how much can an extra payment lower the total cost of a mortgage?5:55 – Are people starting to come back to the market, or are they still locked into their homes due to mortgage rates?7:27 – Are first-time homebuyers the ones who will begin to break the cycle?9:36 –Erika Stanley gives us insight into what is happening globally with natural disasters.11:00 – What is the forecast for mortgage interest rates? How will inflation affect that?Up NextAre Rate Locks the Negotiation Key for Lenders to Secure Loans in this Economy?

Molly Boesel:80% of owners have a mortgage rate under 4%.Maiclaire Bolton Smith:Wow.MB:Yes, yeah.MBS:Wow.MB:So they don’t have a big incentive to give up that rate.

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That’s the Natural Disaster Digest.

I think this is a good place for us to end today. You talked a little bit about where interest rates may go. So that’s my question. What does your crystal ball say? Is there a forecast for interest rates? How soon am I going to be refi-ing my house?

MB:I hate to be the bearer of not great news.