Mortgage Rates Hit All Time Lows, But Will They Stay There?

Home mortgage and refinancing rates continue to be at historic lows; however it’s still tough to predict where these interest rates are headed. Making predictions inside the financial marketplace could prove tricky as these markets are operated by what many feel is a chaotic system. Home Mortgage Loans and Home Equity Loans continue to be on fire as interest rates stay low.  The Federal Reserve maintains their policy of low interest rates to their member banks which place downward pressure on all interest rates other than Credit Cards.  Mathematically, it looks like low home mortgage refinance loans and refinancing loans are here to stay, at least for a few more years. 

When you're looking for a low mortgage rate, online companies seem to be cleaning up.  Companies like www.iWantaBetterMortgage.Com allow customers to shop online and compare potential mortgage rates.  Traffic to these sites have exploded in recent years as home owners are demanding current mortgage rate information without the hassle of talking to multiple mortgage lenders.  Taking this into account can seem to be an appropriate prediction of what is in store for the future; however,predicting interest rates is very similar to making weather predictions. The more you try to guess, the weaker the chance you'll be accurate in the prediction.  What we do know is that the economic climate could provide a better idea of mortgage interest rates as well as how they might change.

Two factors which have caused a rise in today's mortgage refinance rates have included reduced amounts of credit & inflation. "Real-time interest rates" are calculated solely using the principle of supply & demand. Some of the data being provided comes from the aforementioned website, www.iWantaBetterMortgage.Com.  Customer habits are tracked and mortgage products are developed for these new trends.  What is clear is that customers want a better mortgage product.  Interest rates are affected with inflation when banks add up annualized percentage rate of inflation onto your mortgage. A minimized availability of credit indicates that whenever supply is down, demand would rise up, but only those who are likely to pay a higher price can take the mortgage loan.  It applies to everything present in the marketplace, which also includes mortgages. Predicting future mortgage rates takes the supply of amount available in order to lend & whether it's rising or falling and likewise the popularity of the loan product. 

Current better mortgage rates also are determined by using data within the housing market. If home values continue to rise as they have done in the past three years, then the risks for banks are able to be minimized.  Trending now are home equity loans because home values have steadily increased and homeowners are now willing to use home equity to do major repairs that they have been holding off on.  Considering this and other factors, it can be confidently said that mortgage interest rates will rise at some point in the near future. If you would like to make the most of the current lower, better mortgages out there, the moral of this story is to lock in now.  This could be the best period to refinance your current mortgage or purchase a home. Have a look at I Want a Better Mortgage’s website for their no obligation quotes which are currently available online.