Why Title Insurance Matters (and what today’s market means for you)

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The Federal Reserve cut its benchmark rate by 0.25% this month. While the Fed doesn’t directly set mortgage rates, its policy changes often influence them. Ahead of the announcement, the average 30-year fixed dipped to about 6.39%, and mortgage applications surged 29% as buyers rushed to take advantage.

If you’re shopping for a home, it’s also a good time to understand why title insurance matters. It’s a one-time policy that protects both you and your lender from issues that could come up later — like fraud, forgery, unpaid liens, or boundary errors.

On average, title professionals spend about 22 hours resolving title issues before a closing, and over the past five years, the industry has paid nearly $2.9 billion in claims. Defending those claims can cost anywhere from $26,000 for common disputes to over $143,000 for more complex cases such as fraud.

The good news? The cost of title insurance has actually declined by around 5% in recent years, thanks to technology and efficiency improvements. It’s a one-time investment that provides lifetime protection for as long as you own your home.

Bottom line: Lower borrowing costs are helping affordability, but true peace of mind comes from knowing your home’s title is protected — so your biggest investment stays secure.

 

Want to see how today’s market and title protection fit into your plans? Just comment, message, or give me a call—I’m here to help!