How you can learn to predict mortgage rates, too.
Many first-home buyerstend to shop around for the cheapest mortgage rate that they see not understanding that these rates dip and fall. If you get an understanding of how mortgage rates work, you will be in a position to land one that really works for you and may even be cheaper than the one you’re ready to really commit to.
Here’s how you can make a guess:
Calculate according to Thirty-year mortgage rates.
These are the events that lower rates in any given 30 years:
- Falling inflation rates: low inflation increases demand for mortgage bonds
- Weaker-than-expected economic data: a weak economy increases demand for mortgage bonds
- War, disaster and calamity: “uncertainty” increases demand for mortgage bonds