Everyone always like to know where mortgage interest rates are headed. Especially in these erratic times. Forecasts are never entirely accurate, but in the light of recent events we can make some good guesses.
You see many ads touting that you can get very low interest rates on your mortgage. What most advertisements don’t say is that the low interest rate is only relevant for individuals that have an above 700 credit score. Besides the high credit requirement, you will oftentimes need to make a big down payment to qualify for a below five percent interest rate. If you don’t have a crisp clean credit report, like most of us, you will have to pay a little more interest. Lenen is an article in Dutch with their opinion.
If you’ve been watching mortgage interest rates, you are aware of the fact that they have been spiraling down the last few months. The million dollar question is, should you move now, or delay your decision? Buying now may be a losing proposition, because interest rates may sink even further. But if you delay your decision, and interest rates abruptly rise, you also lose.
A lot of people have sent in a mortgage application the last couple of months. Lenders are inundated with requests and a few have raised their fees just to get a grip on the amount of applications. Mortgage interest is positioned to keep going down, but we will see a bounce in the near future.
Some people will look at the bounce as a bad development, but it is not. What you want to do is wait it out and buy when interest rates are going down again. When the bounce is finished, the market is very close to it’s lowest point. If you buy and get a new mortgage, consider fixed rate. You will know you’ve made the right decision when interest rates are climbing again.