March 21, 2009
Here’s Where Mortgage Rates Will Be Going For This Year
Having a crystall ball that told you if mortgage interest rates would rise or fall would be great. Especially in the erratic times we’re living in. Forecasts are never entirely dependable, but in the light of recent events we can make some good guesses.
Lenders around the country are telling every person that will listen about their low interest rates. The fact that only consumers with an above 700 credit score are eligible for these low interest rates is frequently not brought up in the ad. Oftentimes, a big down payment is also necessary for these favorable interest conditions. If your FICO score is under 700, or you do not have the financial reserves for a big down payment, you will have to pay a little more interest.
If you’ve been paying attention to interest rates, you are aware of the fact that they have been spiraling down the past couple of months. What we all want to know is when the market will hit the bottom. If you’re not sure if the interest is at the lowest point right now, you may be inclined to wait with buying a home. But if the interest rates jump up tomorrow, you’ve lost your chance by trying to wait it out.
Mortgage applications are pouring in the past few months. A few lenders have tried to slow the application flow down by increasing their fees, because they are flooded with mortgage applications. Mortgage interest is positioned to keep coming down, but we will see a bounce in the near future.
Many so called ‘experts’ will see the bounce as something bad, but it’s just natural. What you want to do is wait it out and buy when interest rates are sinking again. The market will reach it’s bottom in that period of time and you can gain from it. Think about getting a fixed rate mortgage if possible. This way, you lock in the low interest and protect yourself from mortgage interest rates rising again.
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