Mortgage Interest Rate Trends [mortgagecalculator-tips.blogspot.com]

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Mortgage Interest Rate Trends [mortgagecalculator-tips.blogspot.com]

Mortgage rates fell again to new record lows, providing prospective buyers with more incentive to brave a modestly recovering housing market. 30-year fixed mortgage rates slipped to 3.62 percent, down from 3.66 percent last week. Mortgage rates fall to new record lows

Mortgage interest rates are ever changing due to the status of the economy.  There are several other factors that effect interest rates related to mortgages.  To understand what effects an interest rate is to understand why it is consistently fluctuating. 

What effects a mortgage interest rate? 

There are several factors can that influence a change in rate.  First there are bonds.  The general term bond in this case relates to mortgage backed securities.  It is a simple formula in that when a bond sells for less, the interest rates will increase.  When a bond sells for more, interest rates will then decrease.  As we are currently in a state of flux with our economic status, rates are changing from week to week. 

Why are mortgage interest rates continually unstable?  Even due to changes in mortgage backed securities, emotions are truly the most swaying factor in interest rate determinations.  Individuals who may read about stocks, employment/unemployment data, and economic information are effected by this news.  Even hearing about a mass set of purchases within a certain state or county can influence others to consider the purchase of a home.  People effect people.  A trend, is just that, a trend.  This is why interest rates can not only change from week to week, but also from day to day, and even hourly.

In this, supply and demand becomes an issue that also effects interest rates for mortgages.  In a location such as Milwaukee, Wisconsin, where there are often several homes for sale on a consistent basis, there may not be as much of a demand for a home purchase as say in Sedona, Arizona.

The availability of homes for sale in beautiful Sedona, Arizona are few and far between, increasing the want and overall demand for real estate in the area.

Additional factors such as growth in GDP (gross domestic product), inflation and prices of oil can also make slight changes to interest rates affecting mortgages. 

As of today, there has been a drop in interest rates. This has encouraged those looking to purchase a home to act quickly.  It is also encouraging those who were looking to sell their home, to make pricing adjustments, and/or get their property on the market. 

It is always in a buyer or seller’s best interest to be informed, but to also be prepared for interest rates to drop so they can make their move.  By getting pre-approved for a home loan, one can then watch interest rate trends, and purchase when the time is right.  Additionally, finding an informative realtor to aid in your purchase or sale can also prove to be a good decision. Find More Mortgage Interest Rate Trends Topics

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