The 2010 Mortgage Rate Predictions Are In
Having a crystall ball that told you if mortgage rates would rise or fall would be great. Particularly in the erratic times we’ve experienced lately. Forecasts are never completely reliable, but based on recent events we can make some good guesses.
All over the country, lenders are busily advertising extremely low interest rates. What most advertisements don’t mention is that the low interest rate is only relevant for individuals that have credit scores of 700 or above. Oftentimes, a big down payment is also necessary for these favorable interest conditions. If you don’t have a spotless credit report, like most of us, you will have to pay a bit more interest.
Throughout the last few months, interest rates have consistently spiraled down. What everyone wants to know is when the market will hit the lowest point. Because of the interest rates steadily going down, you may lose a lot of money when you purchase a home right now. But if the interest rates bounce up tomorrow, you’ve missed your chance by delaying your decision.
A large amount of people have applied for for a mortgage these past couple of months. Lenders are flooded with requests and a few have raised their fees just to keep up with the number of applications. Mortgage interest is set to keep going down, but we will see a bounce in the near future.
This bounce is not a negative development. When mortgage interest rates are sinking again, you know that the bounce is ended and that the time to buy has arrived. You will 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 may be a very sound idea. Mortgage Interest Rates will climb again and by deciding on a fixed rate mortgage you protect yourself against this.
