San Diego, CA (PRWEB) June 15, 2014
LoanLove.com is a borrower advice website dedicated to helping borrowers to find loans that they will love. With first class knowledge, valuable resources, and connections to top rated industry professionals, the website has quickly become a trusted source of current news and expert loan advice. A new article from the website continues to empower home buyers and owners with information that can help them in their home ownership experience by taking a look at interest rates trends in the last 30 days.
This new guide from Loan Love titled, “Mortgage Interest Rates Last 30 Days (Valuable Insights)" says, “Most predictions are for long-term rates to increase gradually as the global economy continues to show improvement, and the increase is more likely to come as a series of jumps and plateaus than as a gradual climb. So, what does this mean for mortgage rates in particular? Long-term mortgage rates are still likely to creep up to around the 6 percent mark as 2015 draws to a close, but don’t expect that to shake the housing market or the economy in general. That type of increase in rates is a natural reaction to stronger economic growth, not a sign of trouble brewing elsewhere that is then impacting rates. As the economy continues to expand, a bit of slow down via higher rates is to be expected.”
The article continues to explain that the biggest news for mortgage interest rates in the last 30 days happened towards the end of May, when rated fell to new lows – first to 4.29 percent, then to 4.21 percent and finally closing out with Freddie Mac reporting rates of 4.12 percent for a 30-year fixed rate as of May 29. Much of this movement was due to global unrest and some weakness in the domestic economy. The article states,
“Slower economic growth in China and unrest in the Ukraine are expected to continue impacting Treasury debt for the near term, pushing yields downward and dragging mortgage rates with them. Today’s rates are still significantly higher than May 2013 when the 30-year rate dropped all the way down to 3.35 percent. Continued low rates spell good news for homebuyers, and consequently continued strengthening of the housing market. But that doesn’t mean potential buyers aren’t still being impacted by stricter lending practices. Those with lower credit scores or other blemishes on their credit report are often still locked out from enjoying the benefits of today’s low mortgage rates.”
The article also points to some other economic factors that impacted mortgage interest rates trends over the past 30 days and will continue to influence rates in the near future. It says, “The wildcard in interest rate predictions going forward is the chance of another recession. A recent survey of economists conducted by The Wall Street Journal put the risk at around 12 percent. Not a big chance perhaps, but certainly a factor to keep in the back of your mind if you are trying to do the difficult task of guessing where interest rates are headed—and how quickly. One thing is more of a sure bet: if a recession did show up on the horizon, the Fed wouldn’t be tightening short-term rates after all and long-term interest rates would not be likely to rise against market forces.”
For more information, click here to read the full article at LoanLove.com.