Mortgage rates are still high. How to get an affordable home loan

Average rates for a 30-year mortgage are hovering around 7%, a recent high. And with the Federal Reserve announcing its latest interest rate decision on Sept. 16, prospective homebuyers may be wondering whether relief is coming. But while the Fed can influence mortgage rates, it doesn't set them directly — and a major drop in borrowing costs appears unlikely in the near future.

The good news is that the national average isn't necessarily the mortgage rate you'll receive. Your rate depends on factors including your credit, down payment, loan type and lender, which means comparing offers from multiple mortgage lenders can be especially important when rates are high.

If you're considering buying now, start by finding out what rates and monthly payments you could actually qualify for rather than waiting for the overall market to change. Here's what to know about today's mortgage market and the steps you can take to find a more affordable loan.

Mortgage rates are influenced by several broad economic factors. “They reflect a wide range of market factors including inflation trends, economic growth, jobs data and shifts in the bond market,” says Hayes.

Right now, ongoing inflation, a relatively stable labor market and high Treasury…

Original source: https://www.usatoday.com/money/