Many people were disappointed when mortgage rates didn’t automatically drop after the Federal Reserve lowered the Fed funds rate. The surprise stems from a common misconception: “Fed funds rate determines mortgage rate fluctuations.” However, rate fluctuations have more factors than people realize. Mortgage rates are primarily influenced by long-term bonds. Predictions about future economic conditions and growth, the labor market, unemployment rates, and inflation, all influence long-term bond yields. Anticipating the movement of each of these factors makes determining mortgage rate adjustments very challenging, even for experts.

With so much uncertainty in the market, it’s crucial to have a strategy to protect your home purchase. Woodbridge Pacific Group (WPG), in partnership with US Bank, offers tools to help you navigate this uncertain market and secure the best possible deal on your new home. Rate locks and one-time float-down options can protect you from interest rate adjustments and potentially save you money if rates increase or decline.

Fighting Rising Rates With WPG’s Builder Rate Lock Program

To combat the negative effects of rising interest rates, many banks and lenders offer rate lock programs, which protect buyers from rising rates by allowing them to lock in a lower interest rate for a period of time. Rate lock programs for resale homes typically allow a buyer to reserve a lower interest rate for 30 to 60 days. WPG, however, offers our Builder Lock Program through US Bank, our preferred lender. This program extends a buyer’s locked rate up to 360 days. Buyers working with US Bank are protected from rate hikes that may occur during the construction of their new home. In simple terms, if mortgage rates increase, you keep the low rate you qualified for when you signed your purchase agreement.

Take Advantage of Falling Rates with a Float Down

What happens if rates start to decline after you lock in your mortgage interest rate with US Bank, but before your home closes? Not to worry, the Builder Lock program comes with a one-time float down option to a lower interest rate. This can potentially save you a tremendous amount of money as lower interest rates mean lower monthly mortgage payments.

One More Consideration

If mortgage interest rates continue to decline, as many predict, then there is a good chance the housing market will see an uptick in buyers re-entering the market due to monthly payments becoming more affordable. This increased competition could reduce available inventory as well as drive up home prices. By acting now, you can secure your dream home and potentially save money on your mortgage.

Why choose WPG and our preferred lender US Bank?

When you find your dream WPG home, you can enjoy a streamlined home-buying experience and a competitive mortgage offer when you work with our preferred lender, US Bank. Our collaboration ensures you have the support and resources needed to make informed decisions throughout the process.

Ready to get started?

● Get Pre-Qualified: Connect with US Bank to determine your purchasing power and obtain a pre-approval letter.

● Find Your Home: Explore WPG's stunning selection of homes to find the perfect fit for your lifestyle.

● Lock In Your Rate: Secure today's interest rate with US Bank and take advantage of the potential for a float-down to a lower interest rate.

Don’t miss out on this incredible opportunity. Contact our Sales Team today to learn more about available homes and start your home-buying journey.