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Mortgage Article
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Playing Mortgage Rate Roulette
from: Maxx Home GuidesMortgage 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%. 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'll 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'll still pay less than if you had done it in the 80's and 90's.
Locking in the Rate
In fact, there's 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're 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 News
Compare Mortgage Interest Rates Today – Refinance 30 Year FHA, VA and Fixed ... - Subprime Blogger (blog)
 Telegraph.co.uk | Compare Mortgage Interest Rates Today – Refinance 30 Year FHA, VA and Fixed ... Subprime Blogger (blog) Over the last few days 30 year fixed mortgage rates have bounced off all time lows but rates are still at historically low levels. ... Real Estate News: Mortgage Rates Fall to 4.32% Mortgage rates fall yet again Timebomb' alert as lenders hike mortgage rates adding thousands to home loans |
Government to Deploy Broader Mortgage Aid - Wall Street Journal
Government to Deploy Broader Mortgage Aid Wall Street Journal The Obama administration on Tuesday will launch its most ambitious effort at reducing mortgage balances for homeowners who owe more than ... |
MGIC Leads Mortgage Insurers' Rally as US Adds More Jobs Than Forecast - Bloomberg
MGIC Leads Mortgage Insurers' Rally as US Adds More Jobs Than Forecast Bloomberg MGIC Investment Corp., the biggest mortgage guarantor, led a rally by US home-loan insurers in New York ... MGIC added $1.2B in mortgage coverage in August MGIC Releases Monthly Operating Statistics |
Analysis: Mortgage policy guessing game for investors - Reuters
 The Business Insider | Analysis: Mortgage policy guessing game for investors Reuters NEW YORK (Reuters) - The $5 trillion guaranteed mortgage-backed securities market has long been a technician's dream, with Wall Street shelling ... Regulator Issues Rules On Purchases Of Mortgages FHFA Drafts Mortgage Purchase Rules New Capital Requirements Threaten To Stick Us With Fannie Mae Forever |
Friday Q&A: 20- or 30-Year Mortgage? - MainStreet
 The Money Times | Friday Q&A: 20- or 30-Year Mortgage? MainStreet Nobody talks about them much, but 20-year mortgage loans can save you a ton of money over the long-term, and more banks and lenders are carrying them. ... Mortgage Applications Plunge 37% as Refinancings Rise Average 30 Year Fixed Mortgage Rates Drop to 2010 Lows in September 2%* Home Mortgage Refinance Loan under Obama's Stimulus Plan |
Helios Strategic Mortgage Income Fund, Inc. and Helios Total Return Fund, Inc ... - MarketWatch (press release)
Helios Strategic Mortgage Income Fund, Inc. and Helios Total Return Fund, Inc ... MarketWatch (press release) Helios Strategic Mortgage Income Fund, Inc. declared a monthly dividend of $0.056 per share, payable on September 23, 2010 to stockholders of record on ... |