The 2009 Mortgage Rate Forecasts Are In
People always like to know where mortgage interest rates are headed. Especially in the uncertain times we’re living in. Everyone knows that forecasts are never totally accurate, but we can make a pretty educated guess based on the recent economic events.
Lenders around the country are telling every person that will listen about their low interest rates. The fact that only consumers with an above 700 credit score are eligible for these low interest rates is frequently not brought up in the ad. Oftentimes, a big down payment is also necessary for these favorable interest conditions. If your FICO score is under 700, or you do not have the financial reserves for a big down payment, you will have to pay a little more interest.
If you’ve been watching mortgage interest rates, you know that they have been descending the past couple of months. The million dollar question is, should you act now, or wait it out? If you’re not sure if the interest is at the lowest point right now, you may be inclined to hold off on buying a home. The problem is, if we are really at the lowest point right now, you lose your opportunity of buying at the best time.
Mortgage applications are pouring in the past few months. A few lenders have tried to slow the application flow down by increasing their fees, because they are flooded with mortgage applications. Mortgage interest is positioned to keep coming down, but we will see a bounce in the near future.
The bounce is not something negative in itself. When interest rates are sinking again, you know that the bounce is done and that the time to buy has arrived. You know that the market has almost reached it’s lowest point when the bounce is finished. When you buy and get a new mortgage, consider fixed rate. Interest rates will rise again and with a fixed rate mortgage you protect yourself against this.
