Finance Guides

Everyone always wants to know if mortgage rates will rise or fall in the future. Especially in these uncertain times. Predictions are never totally accurate, but in the light of recent events we can make some good guesses.

Lender ads are all over the place, boasting super low interest rates. The fact that only individuals with an above 700 credit score are entitled these low interest rates is frequently not brought up in the advertisement. Besides the high credit prerequisite, you will frequently need to make a big down payment to be eligible for a below five percent interest rate. If you don’t have a spotless credit report, like most of us, you will have to pay a bit more interest.

During the last few months, interest rates have consistently gone down. What everyone wants to know is when the market will hit the lowest point. Buying now may be a losing proposition, because interest rates may descend even further. But if you delay your decision, and interest rates abruptly rise, you also lose.

Mortgage applications are pouring in the last couple of months. Because of the sharp rise in applications, lenders can’t keep up. 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.

Many so called ‘experts’ will regard the bounce as a bad development, but it’s only natural. You just 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 over. In this period, getting a fixed rate mortgage for a couple of years might be an excellent idea. When interest rates jump again, you will not regret your decision.

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