Mortgage Rate Forecast Prediction Indicators Explained In New Loan Love Guide

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A new guide on helps mortgage borrowers to understand some of the factors used in mortgage interest rates prediction. is a borrower advice website that provides detailed insights into the mortgage industry in a fun and entertaining way. The team at is devoted to help empower both first time and experienced homeowners with valuable resources, first-class knowledge and connections to top-rated industry professionals and has the mission of helping consumers and borrowers to obtain the latest information on mortgage lending trends, the real estate market and the U.S. financial landscape in order to help them obtain a home loan that they will love. In a newly released article, Loan Love continues to help mortgage borrowers to understand the real estate market by explaining some of the biggest economic indicators used in mortgage rate forecast.

The people at Loan Love know that keeping up to date with some of the more “technical” aspects of pinning down a great interest rate is not a great priority for the average home buyer. The article explains: “Especially in recent years, it seems like the news is always full of stories about the economy and the indicators that help evaluate it. Although it may seem these news stories are intended to do little more than cause anxiety (or boredom), in fact, these indicators can give consumers a fairly good idea of whether interest rates are going to rise or fall – and that can be very valuable information to anyone interested in buying or refinancing a home. If you’re trying to determine if now is the best time to lock in a rate, you might want to take a look at the following three indicators to get an idea of how interest rates are likely to move. These 3 things are solid predictors for when interest rates go up or down.”

The three indicators mentioned in the above quote are the GDP, CPI and Payroll Employment (or PE). These three indicators are all tied to inflation, and inflation rates are the most basic reason that mortgage rates move up or down. The GDP, AKA Gross Domestic Product, as explained by the article is a report “Released four times a year, the GDP reflects the dollar amount of all the goods and services that were produced and sold by companies located in the U.S. during the preceding quarter. In general, the economy grows by about 2.6% per year; higher growth could signal inflation, which in turn can cause interest rates to rise, while a lower number indicates stagnation, often tempered by a dip in interest rates to encourage consumer spending.”

Similarly, both the CPI (Consumer Price Index) and Payroll Employment, reports that keep track of shifts in product prices and data on overall employment, hours worked and earnings, respectively, are tied to inflation so that when either of these indicators increases the increase is mirrored in mortgage interest rates. Conversely, lower numbers in these areas often indicate a drop in rates. The GDP, CPI and payroll indicators are coincident indicators, meaning they respond quickly to shifts in the economy. This is in contrast to the unemployment rate which lags behind the economy; shifts in unemployment do not have an immediate impact on the economy and their effect on inflation is delayed.

Understanding how these predictors work can help home buyers and owners to make the best decisions when it comes to locking in a rate. The loan advice website ends the article by saying: “Next time the news shifts to the economy, don’t let your eyes glaze over or your mind wander: Keeping an eye on these rates and understanding what they mean can help you decide whether to lock in a rate now or whether to hold tight, which can end up saving you lots of money in the long run.”

For more information, please visit for the full mortgage rate forecast guide.

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Kevin Blue
Loan Love
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