The 2009 Mortgage Rate Forecasts Are In

24 Mar 2009

by Hypotheek

People always like to know where mortgage interest rates are going. Especially in the erratic times we’re living in. Everyone knows that forecasts are never completely accurate, but we can make a pretty educated guess based on the recent economic events.

Lenders nationwide are telling every person that will listen about their low interest rates. What most ads don’t say is that the low interest rate is only relevant for individuals that have credit scores of 700 or above. Many times, a large down payment is also necessary for these favorable interest conditions. Interest rates will be higher if your credit score isn’t as spotless as lenders like it to be.

If you’ve been watching mortgage interest rates, you know that they have been descending the past couple of months. The million dollar question is, should you act now, or wait it out? If you’re not sure if the interest is at the lowest point right now, you may be inclined to hold off on buying a home. The problem is, if we are really at the lowest point right now, you lose your opportunity of buying at the best time.

Mortgage applications are pouring in the past few months. A few lenders have tried to slow the application flow down by increasing their fees, because they are flooded with mortgage applications. Mortgage interest is positioned to keep coming down, but we will see a bounce in the near future.

The bounce is not something negative in itself. When interest rates are sinking again, you know that the bounce is done and that the time to buy has arrived. You know that the market has almost reached it’s lowest point when the bounce is finished. When you buy and get a new mortgage, consider fixed rate. Interest rates will rise again and with a fixed rate mortgage you protect yourself against this.

About the Author:

Hypotheek writes articles about financial matters such as mortgages and loans. He also writes about hypotheekadviseur and hypotheekadviseurs in Dutch.

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