Why are Mortgage Rates Changing So Often!?!
Your mortgage is most likely your largest debt you will have in your life. Securing your mortgage interest rate is one of the most important factors.
In a regular economy and mortgage market it is hard enough to try and predict interest rates. Trying to make a good decision in a market that is this volatile is even harder. The rates are great right now so it worth locking into a new loan but you need to know you are getting a great deal.
You could practically drive yourself crazy if you try and follow some of the standard rate indicators of the past in this environment. What is the 10 year treasury doing? What is happening on the stock market? These indicators just dont apply like they used to today.
2007 and 2008 were devastating years for mortgage companies. The ones not included in the over 300 that went out of business did not come out the other end of the real estate market crisis looking like they used to. Many banks have had to drastically scale down there work force to stay afloat.
Right now mortgage rates are at an all time low. This is causing a huge increase in new mortgage applications. The banks are still running with the reduced support staff and are unable to handle the work load. With virtually no other choice many of them are being forced to increase their rates to slow down or temporarily stop new applications.
As a result we are experiencing a fluctuation of rates that is artificially caused by the inability of the banks to process loans as fast as they are coming in.
To make sure you are getting a rate that work for you find a mortgage company that you can review your goals with and submit the required information to get you qualified and let them watch for the sudden market drops for you. If they have your information upfront they will not have to miss opportunities to lock a great loan because they are waiting for more information.
In a regular economy and mortgage market it is hard enough to try and predict interest rates. Trying to make a good decision in a market that is this volatile is even harder. The rates are great right now so it worth locking into a new loan but you need to know you are getting a great deal.
You could practically drive yourself crazy if you try and follow some of the standard rate indicators of the past in this environment. What is the 10 year treasury doing? What is happening on the stock market? These indicators just dont apply like they used to today.
2007 and 2008 were devastating years for mortgage companies. The ones not included in the over 300 that went out of business did not come out the other end of the real estate market crisis looking like they used to. Many banks have had to drastically scale down there work force to stay afloat.
Right now mortgage rates are at an all time low. This is causing a huge increase in new mortgage applications. The banks are still running with the reduced support staff and are unable to handle the work load. With virtually no other choice many of them are being forced to increase their rates to slow down or temporarily stop new applications.
As a result we are experiencing a fluctuation of rates that is artificially caused by the inability of the banks to process loans as fast as they are coming in.
To make sure you are getting a rate that work for you find a mortgage company that you can review your goals with and submit the required information to get you qualified and let them watch for the sudden market drops for you. If they have your information upfront they will not have to miss opportunities to lock a great loan because they are waiting for more information.
About the Author:
Start your process by watching real time mortgage rates online. If today's rates are lower than your current mortgage rate it is time to partner with a trustworthy company to ensure you are getting a great deal.
posted by Debt Consolidation Loan at
8:49 PM
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