Like the weather, mortgage rates are unpredictable and are constantly rising and falling. This makes shopping for the lowest rates for your new home difficult. Although they are constantly changing, if you learn to better understand mortgage rates, it will be easier for you to predict these changes and to find the best price.
Like bringing your umbrella to a storm, understanding mortgage bonds is necessary in order to understand mortgage rates. Like stocks, mortgage bonds are sold at Wall Street and when the demand for these bonds up, the prices do as well. When bond prices rise mortgage rates actually decline.
As a consumer it is difficult to access bond prices but there are other ways to predict the outcome of mortgage rates. Here are some signs of a lower mortgage rate in the future:
- Low inflation rates
- Weaker economic data
- War and catastrophe
Insurance and Mortgage Services would like to be your weatherman and help you understand the forecast on these constantly changing mortgage rates. Contact us for more info about mortgage services and insurance.