How Low Will Mortgage Rates Go?                   

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How Low Will Mortgage Rates Go?

With the refinancing wave dissipating due to the recent upward climb in home mortgage rates early this month many did not expect to see any significant drop in rates anytime soon. But drop they did. Over the past several years rates have remained at 6 and 5 percent lows. At the writing of this articles the fed rate was cut to 2%.  With the economy slowing at lower than expected pace, we should see mortgage rates drop or at least remain steady in the coming weeks.

Weakening consumer confidence indicates that consumers may be less apt to make large purchases in the near future, restricting economic growth. This may be bad news for the economy in the short term but good news for the Bond market as rates decrease loan application should increase activity in the mortgage and housing industry.

For more than two years lenders, brokers, home buyers and home-owners have been asking “How low will rates go?” The answer is not an easy one. Just a year ago when rates were fluctuating between 7% and 6.5% experts doubted if rates would decline much further. But decline they did from 6.5 to well below 6%.

 Now homeowners who refinanced early are kicking themselves for not having waited a few months later.  Still with rates at record lows home-owners and home-buyers need not feel they will miss out on a good deal months down the road.  Some have refinanced again only months later and are realizing great savings.

 The fact is rates will not stay this low for long. As a matter of fact significant dips in the interest rate level tend to remain only a day or so and even with-in the day dipping and rising one hour to the next.  Yet for several weeks rates have remained under the 6% mark. A level consumers can only count on for a short time.  Experts are encouraging locking in rates before the anticipated upward movement.

 Consumers should consult their mortgage professional to find out if these programs will work best for them. Loan rate shoppers seeking low rates for refinancing or home buying should not delay preparing to lock-in rates at today's lows.  Lending marketplaces are an ideal resources to find competitive rates, incentives and low fees. 

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