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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 Home Specific links
Mortgage Home News
Residential Mortgage Backed Roosters Comin' Home To Roost As RMBS Task Force ... - Forbes
 Washington Times | Residential Mortgage Backed Roosters Comin' Home To Roost As RMBS Task Force ... Forbes First the feds were looking at the the swath of mortgage-backed securities among Federal Home Loan Mortgage Corporation (Freddie Mac), the Federal National Mortgage Association (Fannie Mae), and the Government National Mortgage Association (Ginnie Mae) ... Fraud Whistleblowers: Uncle Sam Wants You |
US 30-year mortgage rate falls to record 3.78 pct. - BusinessWeek
 OregonLive.com | US 30-year mortgage rate falls to record 3.78 pct. BusinessWeek By MARTIN CRUTSINGER 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 home sales modestly this year. Mortgage buyer Freddie Mac said Thursday that the rate on the ... Mortgage rate hits new low Freddie Mac: 30-year mortgage rate down a tick at 3.78% Mortgage Rates Fall Again |
Hoboken Homes Gone in 60 Minutes Signal U.S. Recovery: Mortgages - San Francisco Chronicle
Hoboken Homes Gone in 60 Minutes Signal U.S. Recovery: Mortgages San Francisco Chronicle US homebuilders are reporting their most-improved spring selling season in seven years as record low mortgage rates, job gains, and shrinking inventories are drawing buyers to sales offices that have been quiet since the property market collapse. |
One in three mortgage holders still underwater - msnbc.com (blog)
 Los Angeles Times | One in three mortgage holders still underwater msnbc.com (blog) Nearly 16 million homeowners owed more on their mortgages than their home was worth in the first quarter, or nearly one-third of US homeowners with mortgages. That's a $1.2 trillion hole in the collective home equity of American households. More than 30% of mortgage borrowers still underwater STUDY: One In Three Homeowners Owes Bank More Than Home Is Worth Negative equity remains a drag on housing market |
One in 7 Irish mortgages in trouble-Central Bank - Reuters
 BBC News | One in 7 Irish mortgages in trouble-Central Bank Reuters * Number of troubled mortgages up 8 percent since end-2011 * Unemployment, falling house prices make repayment tougher * Big risk that losses exceed stress test results-analyst By Conor Humphries DUBLIN, May 25 (Reuters) - The number of problem ... One in 10 mortgages in Irish Republic 'in arrears' Banks and developers bailed out, so should struggling mortgage holders One in ten mortgages now in arrears |