How to get a home equity loan with bad credit

"Inflation has decreased from a year ago, but it appears to have reached a standstill, and certain indicators suggest it may be on the rise once more. Recently, some Fed officials have hinted that instead of three to four rate cuts this year, one or two cuts may suffice. We may not see these cuts until later in the year. While minor fluctuations are to be expected — particularly on a week-to-week basis, unless there are significant shifts in the economy — we shouldn't see any drastic spikes or declines in rates. Mortgage rates in May will likely remain stable, similar to April's rates."

"The March inflation report was likely a disappointment to those hoping the Federal Reserve would start cutting rates sooner rather than later. It appears easing is still on the horizon, and with that should come a gradual decrease in the mortgage rates. For now, look for the 30-year mortgage rate to remain in the high-6% range in May."

"March's CPI report, which showed uncomfortably high price increases for a second month in the headline figures and third month in the core data, is creating a wrinkle for the Fed and investors as they contemplate the economy's path forward. The improvement in inflation observed at the end of 2023 has evaporated, bolstering the Fed's cautious approach to easing monetary policy back to a more neutral stance. I expect that we'll see mortgage rates shoot higher in late April, on the heels of concerns that inflation will prove more difficult to tame than first estimated."

"Persistent inflation has dashed investor hopes for a Federal Reserve rate cut in June, which implies mortgage rates will remain 'higher-for-longer.' If inflation data between now and May continues to come in hotter than expected, and/or the Fed takes on a more hawkish tone at their upcoming meeting, we can anticipate upward pressure on mortgage rates."

"Momentum in the labor markets — lower unemployment and unexpectedly strong job creation — coupled with inflation that's simply not moving in the direction the Federal Reserve wants, make it unlikely that we'll see the Fed Funds Rate cut before June at the earliest. That probably means that mortgage rates will stay at or slightly above 7% through May as the market bides its time. We're not likely to see mortgage rates decline significantly until after the Fed makes its first cut; and the longer it takes for that to happen, the less likely it is that we'll see rates much below 6.5% by the end of the year."

Be Ready to Move Quickly

Although the housing market is becoming more balanced than the recent past, it still favors sellers. Buyers should get pre-approved (not pre-qualified) for their mortgage so that the seller has some certainty about the deal closing. Be ready to close quickly — a long escrow period will put you at a disadvantage.

"Taking too long to decide to make an offer can lead to paying more for the home at best and at worst to losing out on it entirely. And it's definitely not a bad idea to work with a real estate agent who has access to 'coming soon' properties, which can give a buyer a little bit of a head start competing for the limited number of homes available."

— Rick Sharga, CEO, CJ Patrick Company

Shopping Around Isn't Only for the Holidays

Since interest rates can vary drastically from day to day and from lender to lender, failing to shop around likely leads to money lost. Lenders charge different rates for different levels of credit scores.

"For potential home buyers, it's important to get quotes from multiple lenders for a mortgage, as rates can vary dramatically, especially during such a volatile period."

— Odeta Kushi, Deputy Chief Economist, First American