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Playing Mortgage Rate Roulette
from:Mortgage rates are rising due to more demand for mortgage products. Even though the Federal Reserve has tried to influence the home mortgage industry by leveraging the discount points charged to lenders, it’s not a one-to-one relationship. Mortgage rates are more susceptible to supply and demand of the actual mortgage products and competition between lenders, rather than some arbitrary rate the Federal Reserve charges bank who are borrowing money. So, there really isn’t a real way to time your entrance into the home buying market by waiting for interest rates to drop. Instead, they may rise no matter what the Federal Reserve does to try to influence the markets. On the other hand, they could drop but there’s no way to tell until after the fact. So, if you want to buy a home, don’t play mortgage rate roulette. Instead, take the long-term view and realize that no matter what happens this may be an ideal time to buy a home if you have great credit.
Historically Low Mortgage Rates
If you take a look at how the mortgage rate offered by lenders has changed over the years, Bankrate.com estimated that the average 30-year fixed rate during the last 22 years was 7.99 percent. That’s because in the decades of the 80’s and 90’s rates were much higher than they are today. We only started to see less expensive rates being offered in the years in the 2000’s. So, while you may not get the best rate possible (if rates drop), historically you will probably get a better deal than many in the years past. So, if the rate inches up a small percentage, it may cost you more in the long run to finance your mortgage, but you will still pay less than if you had done it in the 80’s and 90’s.
Locking in the Rate
In fact, there is probably more likelihood that mortgage rates might increase as the economy starts to recover and demand for mortgage products increase. Of course, this may be a few years down the line, but you can always lock in your rate when you qualify for the loan. This is one way people help to take the worry out of mortgage rates increasing while they are looking for a home. Instead, they qualify for a mortgage first, lock in the rate, and buy the house in the period of time allotted by the rate lock. It makes looking for a home a little less stressful when you already know what you will be paying and for how long.
Mortgage Fixed Specific links
Mortgage Fixed News
US 30-year mortgage rate falls to record 3.78 pct. - Philadelphia Inquirer
 OregonLive.com | US 30-year mortgage rate falls to record 3.78 pct. Philadelphia Inquirer AP AP For a fourth straight week, the average rate for a 30-year fixed mortgage fell to a record low. WASHINGTON - The average US rate for the 30-year fixed mortgage fell to a record low for a fourth straight week. Cheap mortgages have helped boost ... PRESS RELEASE: Freddie Mac Says Historic Lows For Fixed Mortgage Rates Hold Steady Historic Lows for Fixed Mortgage Rates Hold Steady Freddie Mac: 30-year mortgage rate down a tick at 3.78% |
Bankrate: Mortgage Rates Hold at Record Lows - MarketWatch (press release)
 San Francisco Bay Area Today (press release) | Bankrate: Mortgage Rates Hold at Record Lows MarketWatch (press release) NEW YORK, May 24, 2012 /PRNewswire via COMTEX/ -- Mortgage rates were little changed, remaining at record low levels. The average rate on the benchmark 30-year fixed mortgage rate was unchanged at the record low of 3.97 percent according to ... Rates are Great, Home Prices Less Filling Mortgage comparison-shopping: How to read good faith estimate Mortgage Rates: Low Mortgage Rates Attracting Borrowers to Mortgage Refinances |
CBA cuts rates on fixed rate mortgages - Sky News Australia
 BigPond News | CBA cuts rates on fixed rate mortgages Sky News Australia CBA cuts rates on fixed rate mortgages Updated: 13:57, Friday May 25, 2012 Commonwealth Bank of Australia has cut interest rates on some fixed rate home loans by up to 0.4 per cent. CBA on Friday said interest rates on two-year fixed rate residential ... CBA trims interest rates for fixed-rate mortgages Commonwealth Bank cuts fixed rates by 0.4 percentage points, but not three ... Commbank drops rates by 0.4 per cent |
HSH.com Weekly Mortgage Rates Radar: Fixed Mortgage Rates at New Record Low Again - San Francisco Chronicle (press release)
 New Zealand Herald | HSH.com Weekly Mortgage Rates Radar: Fixed Mortgage Rates at New Record Low Again San Francisco Chronicle (press release) HSH.com releases its latest Weekly Mortgage Rates Radar showing a downward drift in fixed mortgage rates from the previous week. The Weekly Mortgage Rates Radar reports the average rates and points offered by lenders for the two most popular types of ... 30-Year Fixed Mortgage Rate Rises Slightly After Falling to All-Time Low Last ... MBA Weekly Survey: Refinance Applications Increase Because of Record Low ... Record-low mortgage rates spur refinancing |
What it takes to buy a home - Chicago Tribune
 Newsolio (blog) | What it takes to buy a home Chicago Tribune They put down 20 percent to avoid private mortgage insurance and snagged a 30-year fixed rate of 3.75 percent from a credit union. Their monthly mortgage payment is $1524. Before you take the plunge, consider the answers to questions often posed by ... Three most common types of mortgages: 30 Year Fixed-rate, 15 Year Fixed-rate ... |