Archive for category Mortgage Rates
Have Mortgage Rates Bottomed Out?
Posted by Top Home Loans in Mortgage Rates on September 3, 2010
Recently mortgage fixed rates have dropped to levels that many would have never thought that we could reach. Mortgage interest rates generally stay a lot higher than where they are currently, but recently they have dropped to levels that are consistently low. This is due to extremely high levels of demand for bonds and bond equivalents.
But is this the market of the future?
Investors love security and they love solid returns on investments. Bonds are providing security, but they are not providing good returns for investors. Bond rates cannot stay low forever, and soon investors will move from bonds to equities. The more money that leaves bonds, the greater the rates will increase.
How long will we have low interest rates?
No one knows how long rates will stay low, but one thing is for sure: if mortgage rates go down, they will eventually go back up again. If you have a high mortgage interest rate, it is always a good idea to get something lower to protect your investment. Securing low rates is what everyone should be doing. If your mortgage rate is above a certain threshold, then it would be a good idea to lower your mortgage interest and get a good rate.
We can help with that.
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Prime Rate expected to Continue Risng without the Market
Posted by Top Home Loans in Mortgage Advice, Mortgage Rates on August 23, 2010
Prime rate has increased by half a percent over the past several months. Many people expect it to stop increasing because of the recent market pull backs; however, many analysts still expect it to continue rising.
How could Prime Rate increase in our economy?
Most people think that our economy is not performing very well, and they figure that interest rates should remain low in order to promote the economy; however, our economy has rose quickly over the last year. It is expected that things will continue to improve even though we recently saw a market slowdown.
The reason for rising interest rates is to save our economy from a future recession. The current recession was bad enough; however, if we cause a second one in the next several months, then we may experience an even worse recession in the near future.
Is rising mortgage rates good for me?
For most people, rising rates is a bad thing. This means higher costs of living, higher mortgage payments, greater monthly costs, and more fees. This also means that property values are expected to decline. In most cases, rising mortgage rates are a bad thing unless you plan on buying a property.
Save yourself from a rising prime rate
Saving yourself from prime rate is usually not advised and not necessary. Most people can stick with a prime rate through high and low interest rates; however, some people prefer the security of a locked in mortgage rate. This decision is usually difficult for most, but a good mortgage professional can make this decision easier. Make sure you team up with a strong mortgage professional.
How do you cope with prime rate increasing? What is your mortgage interest rate? Leave your response in the comments below.
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Mortgage Interest Rates; Slowly on the Rise
Posted by Top Home Loans in Mortgage News, Mortgage Rates on July 6, 2010
Mortgage rates have been moving up in recent months; however, it does not seem like they are going up very quickly. The mortgage market has declined quite substantially in recent weeks, and the reason is not even due to increasing interest rates. The reason everyone is moving away from the market is affordability and house values.
No one wants to buy a house at the peak of the housing market. The best time to purchase a property is when property values drop to their lowest values in years. At this time is when people begin to buy quickly and aggressively. When people begin to sell slowly and aggressively, that is when you can be sure that the housing market is at its peak.
This summer has seen a spike in activity in March and April, and in June and July, it has slowed down quite substantially. Unfortunately, it is expected to decline even more once mortgage rates continue to fall.
The next market decline has to do with mortgage rates. As more and more buyer’s exit the market because of higher mortgage rates, then demand for properties will decrease substantially. Luckily, rates are not declining as quickly as expected.
Originally though, most economists expected that when rates began moving up, they would move fast and hard. Thankfully, that is not what is happening this time in the mortgage market. Due to the lack of activity, mortgage rates have remained fairly stable, with some banks even decreasing their fixed rates. Due to lack of consumer confidence and equity demand, this has caused bond rates to stay consistently low. The lower the bond rates, the lower the mortgage interest rates.
Will the market recover?
Most definitely it will recover. How quickly it will recover is e real question that should be asked because the recover that was expected to be fast may turn into a double dip recession.
If you are looking for a low interest rate, then there is plenty of opportunity; however, if you are looking for a good deal on a house, then you may have to wait quite a bit longer to get these deals.