mortgage rate trends

Exclusive summary about Home Mortgage Rate Trends by Jesse R Wojdylo

Current home mortgage rate trends are showing that we should expect higher interest rates in the very near future. The trend in the 10 year treasury rate yield that began back in January remains intact and as strong as ever. If you were hoping that the mortgage rate trend would reverse and head down, you might have missed the boat. This bottoming process could mean that average mortgage rates could head into the double digits in the next few years.

By forcing rates lower through the purchasing of US debt, the Federal Reserve Bank has devalued our currency. As the US dollar drops in value, the 10 year yield increases which causes overall interest rates to move higher. The Fed continues to shell out billions of dollars to buy up mortgage backed securities. This will help to keep rates low now, but eventually, when the dollar gets devalued even more, we are going to see an inflationary period that includes much higher rates.

Letting Mortgage Rate Trends Work for You

Exclusive summary about Home Mortgage Rate Trends by Jonathan Andrew

So you need to plan your entry home market, and try to wait until mortgage rates trends are favorable before accepting a home loan.

Once you have committed to a mortgage, you will be stuck with that interest rate even if the mortgage rate trends head down, unless you have opted for and adjustable rate mortgage. An adjustable rate mortgage, as opposed to a fixed rate mortgage, will have an interest rate which fluctuates with the prime lending rate. So you will not be stuck with a high interest rate as you watch mortgage rate trends fall quarter after quarter.

You can determine current mortgage rate trends by reviewing financial newspapers and following the financial networks. Mortgage rate trends are tied to supply and demand in the housing market, and as the supply of available housing increases, the mortgage rate trends will head down to encourage more buyers to enter the market and clear the backlog.