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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 Quotes News
Historic Lows for Fixed Mortgage Rates Hold Steady - Sacramento Bee
 OregonLive.com | Historic Lows for Fixed Mortgage Rates Hold Steady Sacramento Bee By Freddie Mac MCLEAN, Va., May 24, 2012 -- /PRNewswire/ -- Freddie Mac (OTC: FMCC) today released the results of its Primary Mortgage Market Survey® (PMMS®), showing the record lows for average fixed mortgage rates holding steady for the week. 30-year mortgage rate hits record low of 3.78% Freddie Mac Text:Mtg Survey: 30Y Fixed Avg 3.78% May 24 Wk |
Zillow: US 30-Year-Mortgage Rates Rose Slightly In Latest Week - Wall Street Journal
Zillow: US 30-Year-Mortgage Rates Rose Slightly In Latest Week Wall Street Journal Zillow Inc. (Z) said Tuesday its real-time measure of 30-year-fixed-mortgage rates rose in the latest week, snapping a four-week decline. The 30-year-fixed-mortgage rate on Zillow's Mortgage Marketplace edged up to 3.63%, from 3.59% a week earlier. |
Mortgage rates at record lows as 30-yr at 3.79% - MarketWatch
Mortgage rates at record lows as 30-yr at 3.79% MarketWatch WASHINGTON (MarketWatch) - Mortgage rates hit record lows in the week ending May 17, with the 30-year fixed-rate mortgage average falling to 3.79% from 3.83% in the prior week, Freddie Mac said Thursday in its weekly report. These data go back to 1971. |
Zillow: US 30-Year Mortgage Rates Fall For 4th Straight Week - Wall Street Journal
 Eastern Morning Herald | Zillow: US 30-Year Mortgage Rates Fall For 4th Straight Week Wall Street Journal Zillow Inc. (Z) said Tuesday its real-time measure of 30-year fixed mortgage rates dropped for a fourth week in a row. The 30-year fixed mortgage rate on Zillow's Mortgage Marketplace fell to 3.59%, from 3.65% a week earlier. 30-Year Fixed Mortgage Rate Hits New Record Low For Second Consecutive Week ... |
30-Year Fixed Mortgage Rate Rises Slightly After Falling to All-Time Low Last ... - MarketWatch (press release)
30-Year Fixed Mortgage Rate Rises Slightly After Falling to All-Time Low Last ... MarketWatch (press release) The 30-year fixed mortgage rate hovered between 3.55 and 3.6 percent for the majority of the week, jumping to the current rate this morning. "Mortgage rates remained historically low during the past week as continuing concerns about eurozone economic ... |