If you’re thinking about buying a home, now may be the time to act. That’s because a new study says the winter months are the best time of the year to get a mortgage.

But even if you decide to wait until spring to buy, there are steps you can take to reduce the amount you pay in financing costs. Here are a few of the study’s key findings:

Mortgage rates are cheaper in the winter

Economic experts at Haus, a home-finance startup, analyzed more than 8.5 million mortgage records from Freddie Mac and determined that just like everything else in real estate “mortgage rates also exhibit seasonality.”

With all else being equal, consumers received the best interest rates in January, followed by December and February.

In January, for example, borrowers received a discount of nearly 20 basis points (0.2%) compared to June and October, which are typically popular times for buying a home. In December, the pricing was 18 basis points lower (0.18%). February’s discount was 14 basis points (0.14%).

“While we can’t say for exact certainty why rates are lower in January than in the summer months, we can speculate that competition for customers matters,” said Haus Chief Economist and Senior Vice President of Analytics Ralph McLaughlin in a report about the study’s findings. “Since home buying and refinancing is seasonal, there is less mortgage origination in winter months, so it could be that lenders must lower their rates to stay competitive and attract business.”

Not only will winter buyers benefit from this seasonal effect, but this year’s winter buyers have the added advantage of pandemic-induced historically low rates. For example, Freddie Mac reported on Feb. 11 that the average rate on a 30-year mortgage was 2.73% — not much higher than the record low of 2.65% recorded in early January.

With economists expecting rates to rise later in the year, borrowers who act quickly may receive this two-fold benefit.

Mortgage shopping makes a difference

The Haus study also analyzed how much rates varied between lenders and found a spread of 75 basis points (0.75%).

“And remember, our analysis controls for the characteristics of the borrower, such as size of their down payment, existing debt, and credit score, so this means that, all else equal, the same borrower would get a 5% rate with the most expensive lender and a 4.25% rate with the least expensive lender,” McLaughlin wrote.

The difference in rates could equate to thousands in additional mortgage costs. Because of these price differences, it’s important to shop for a mortgage and compare rates and fees from several different lenders.

To learn more about shopping for a mortgage, including information about industry terminology and how to compare rates, visit the Federal Trade Commission’s website. Go to Consumer.ftc.gov and search for the “Shopping for a Mortgage” article.

To jump-start your mortgage shopping, also ask your Realtor for the names of several lenders in your area.

Good credit is still important

The study found that having good credit is important when getting a mortgage; however, it’s not necessary to have an 800+ credit score to see the benefits.

For example, the study found that those with credit scores above 800 received discounts of 42 basis points (0.42%). However, the discount for those with scores between 750-799 was not far off at 41 basis points (0.41%).

The biggest benefits will come for those in the 700-749 and 650-699 categories who can raise their score. For example, someone in the 650-699 category could save 16 basis points (0.16%) by improving their credit score to the low 700s.

To review your credit history, download a free copy of your credit report at AnnualCreditReport.com.

To learn more about the home-buying process and housing market conditions in your neighborhood, contact a local Realtor. Find a directory of Northern Wasatch Realtors at NWAOR.com.