Thirty-Year FIXED rate mortgages are now down to 5.78%, compared to 6.08% last week. Multiply "6" times every one-hundred thousand ($100K) you borrow to get a rough idea on how much your payment will be... So, a $400K loan balance will equal a Principal and Interest Payment of approx. $2,400./mo. -- It won't get much better than that!! I have a link on my website to current mortgage rates:
For my clients I negotiate that the seller buy down the rate. This helps by buyers, by getting a lower interest ate which will save them a lot more over the life of the loan
Hope this helps. If you need to speak to a fantastic lender let me know
First Team Real Estate
714 552 6817
As a future homebuyer, you should hope interest rates DO RISE. Here's the reason why: Home AFFORDABILITY is based on several factors, but the bottom line is that you are buying a "payment" rather than a house. You are QUALIFIED to buy the home of your dreams based on the payment you can afford. If interest rates should rise, the HOME SELLER will be forced to LOWER THEIR SELLING PRICE in order for you to purchase their home.
So, you will pay less for your home up front, pay it off sooner, have LOWER property taxes every month, and THEN you can refinance to an even lower payment when/if interest rates fall again. No one has a crystal ball. But, rising interest rates can help you buy your next home and come out smelling like a rose at retirement!
Seriously, if someone could know for sure, that person would be a multi-millionaire. Long-term Mortgage interest rates are driven by the price of mortgage backed securities. Such prices change daily and we have seen a lot of volitility in the mortgage backed securities markets. This means that interest rate have risen, but they have also dropped many times in the same day. Whether the rate you lock in has risen or dropped depends on when exactly you priced your loan and when you locked it. If you were to graph it out, it may look like a rollacoaster.
In a general sense, inflationary pressures on the economy tend to be bad news for mortgage bonds and this drives down the price of such bonds and consequently pushes interest rates up. Therefore, if the dollar weakens, the price of oil goes up, and other factors that will worsen inflation happen, then this will likely mean that interest rates will go up. However, if the reverse happens, and the Federal Reserve raises the federal funds rates to try to control inflation, something bad happens in the stock market, etc, then interest rates may tend to drop.
The moral of the story is that whether mortgage interest rates go up or down and the reason why may be a lot more complex than what most people think. This is why it would be good for you to work with a trusted Mortgage Consultant that can guide you through all of these issues and help you make the right decisions.