This Year’s Mortgage Rate Predictions


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We all want to know what the mortgage rate will look like in the near future. Particularly in the uncertain times we’ve witnessed lately. Predictions are never entirely reliable, but in the light of recent events we can make some good guesses.

Low interest rates are promoted by lenders countrywide. What most advertisements forget to mention is that the low interest rate is only relevant for consumers that have credit scores of 700 or above. Many times, a large down payment is also necessary for these favorable interest conditions. Interest rates will be higher if your credit score isn’t as spotless as lenders like it to be.

Mortgage interest has gone down consistently the last few months. The question is, should you act now, or wait it out? If you’re not sure if the interest is at it’s lowest point right now, you may be prone to hold off on buying a home. But if the interest rates bounce up tomorrow, you’ve missed your chance by trying to time the market.

A lot of people have sent in a mortgage application the past few months. Some lenders have attempted to slow the mortgage loan application flow down by increasing their fees, because they are flooded with mortgage applications. The average trend for mortgage interest rates is that it’s going down, but it’s not unrealistic to expect a bounce in interest rate pretty soon.

The bounce is not a bad thing in itself. You simply have to wait it out and you’ll see the interest sink again. You know that the market has almost reached it’s bottom when the bounce is done. In this period, getting a fixed rate mortgage for a couple of years might be a great idea. Interest rates will climb again and by having a fixed rate mortgage you protect yourself and your family against this.

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