Housing Watch: Quieter Spring market compared to past trends

FRESNO, Calif. (KFSN) -- Spring is typically a time when home buying picks up.

With high home prices and high mortgage interest rates, that has not been the case this season.

Ted Rossman is an Analyst with Bankrate, a personal finance website.

He says inflation and high gas prices have also lowered consumer confidence.

Rossman doesn't see the average mortgage interest rate dipping below 6% this year unless you have very good credit.

"On the seller side, we know about this golden handcuff effect where a lot of people locked in 3% or 4% mortgage rates a few years ago, and they're very reluctant to sell right now," he said. "Maybe they're more enticed if they can get a 5 1/2% rate. "

Rossman says it is important you improve your credit rating before house-hunting.

He says make sure you shop around and get estimates from different lenders because small variations in that interest rate represent a large amount of money.

"The difference between a 7.1% mortgage rate and a 6.4%, that's about 3/4 of a point," he said. "That's $54,000 in interest over 30 years if you're buying a $400,000 home."

For current homeowners looking for ways to pay off their mortgage early, Rossman has a tip that worked perfectly for himself.

"Even if you make one additional monthly payment every year, that can actually trim about six years off the typical 30-year mortgage cycle, and that right there could save you tens of thousands of dollars in interest," he said.

One extra mortgage payment a year can make a big difference in your budget.

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