People always wants to know if mortgage rates will rise or fall in the future. Particularly in these uncertain times. Based on recent events, we can not make predictions that are one hundred percent accurate, but we can make a pretty educated guess.
You see many advertisements boasting claims about the fact that you can get super low interest rates on your mortgage. Unfortunately, this is only applicable for individuals that have credit scores over 700. Many times, a large down payment is also required for these favorable interest terms. If your FICO score is below seven hundred, or you do not have the financial reserves for a big down payment, you will have to pay a little more interest.
Over the last few months, mortgage interest rates have consistently spiraled down. The question is, should you move now, or wait it out? Buying now may be a losing proposition, because interest rates may go down even further. But if you hold off on your decision, and interest rates suddenly rise, you also lose.
Many people have applied for mortgages the past couple of months. Some lenders have tried to slow the application flow down by raising their fees, because they are loaded with mortgage applications. The overall trend for mortgage interest rates is that it’s coming down, but it’s not unrealistic to expect a bounce in interest rate pretty soon.
The bounce is not bad in itself. What you need to do is delay your decision and buy when interest rates are going down again. When the bounce is finished, the mortgage market is very close to it’s bottom. In this period, getting a fixed rate mortgage for a few years might be an excellent idea. Mortgage Interest Rates will climb once more and by deciding on a fixed rate mortgage you protect yourself against this.
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