Question by kizmet_or_beer: anyone have an eye on current mortgage rate trends? I am buying a home and the rate right now for my loan is 6% (Wells fargo Home opportunities loan 100% financing). Conventional is 5.875 and that is down from last month so I am wondering if I should just lock in my rate or if it is expected to go down more or up soon? I need a good backing for my decision either way. Please help. Best answer for anyone have an eye on current mortgage rate trends?:
Answer by oaklandted
Lock in now, or soon; the rates are bottoming out.
Answer by David W
6% is pretty good. You could get the lowest rate by putting some more money into it, but trying to get it down another 1/8 of point is not worth the effort. Rates are going to stay the same for the next 6 months (move up or down a 1/8 point.) since the Federal Reserve has indicated that they are not going to change interest rates soon unless it gets data that differs from their expectations. Go ahead and lock it in. To see the difference, I suggest you go to www.bankrate.com or www.mortgage101.com to see how much the 1/8 of a point will make a difference. Just a bit of information, if you have your bank account at Wells Fargo, they could give you a discount on your rate. (maybe an 1/8 or a 1/4). You just have to ask about it.
Answer by Jen G
10-year Treasury notes are a benchmark for setting Mortgage Interest Rates. Go to Yahoo home page and click on Finance and you can view the activity the Bond is having on any given day. I agree with taking advantage of "Buying down your rate" if you look at the fully amortization calculator on www.bankrate.com you can really see the difference between two rates and calculate the money you would save on your loan. Good Luck!
Current mortgage rate trends July 20, 2011
mortgage-investment.blogspot.com Current mortgage rate trends July 20,2011
As of July 12th, Freddie Mac (FMCC.OB) reported that 30-Year Fixed Rate Mortgages (FRM) hit new lows. Mortgages originated during the time frame of the report are showing rates of 3.56%, down from 3.62% in the prior week. For the year, mortgage rates ... Low Mortgages Rates Stimulate Housing
Mortgage interest rates are ever changing due to the status of the economy. There are several other factors that effect interest rates related to mortgages. To understand what effects an interest rate is to understand why it is consistently fluctuating.Â
What effects a mortgage interest rate?Â
There are several factors can that influence a change in rate. First there are bonds. The general term bond in this case relates to mortgage backed securities. It is a simple formula in that when a bond sells for less, the interest rates will increase. When a bond sells for more, interest rates will then decrease. As we are currently in a state of flux with our economic status, rates are changing from week to week.Â
Why are mortgage interest rates continually unstable? Even due to changes in mortgage backed securities, emotions are truly the most swaying factor in interest rate determinations. Individuals who may read about stocks, employment/unemployment data, and economic information are effected by this news. Even hearing about a mass set of purchases within a certain state or county can influence others to consider the purchase of a home. People effect people. A trend, is just that, a trend. This is why interest rates can not only change from week to week, but also from day to day, and even hourly.
In this, supply and demand becomes an issue that also effects interest rates for mortgages. In a location such as Milwaukee, Wisconsin, where there are often several homes for sale on a consistent basis, there may not be as much of a demand for a home purchase as say in Sedona, Arizona.
Additional factors such as growth in GDP (gross domestic product), inflation and prices of oil can also make slight changes to interest rates affecting mortgages.Â
As of today, there has been a drop in interest rates. This has encouraged those looking to purchase a home to act quickly. It is also encouraging those who were looking to sell their home, to make pricing adjustments, and/or get their property on the market.Â
It is always in a buyer or seller’s best interest to be informed, but to also be prepared for interest rates to drop so they can make their move. By getting pre-approved for a home loan, one can then watch interest rate trends, and purchase when the time is right. Additionally, finding an informative realtor to aid in your purchase or sale can also prove to be a good decision. Related Mortgage Interest Rate Trends Issues
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