San Diego, CA (PRWEB) June 13, 2014
A new article from Loan Love helps borrowers to better understand the current mortgage rate environment by looking at mortgage interest rates in the last 30 days. LoanLove.com is dedicated to helping borrowers to find loans that they will love and this new article continues to provide information which can help those who are looking for the best home loan to make informed decisions regarding their home buying plans.
The new article, titled “Mortgage Interest Rates Last 30 Days (Valuable Insights)” says, “When it comes to forecasting interest rates, the predictions have sounded like a broken record for the past year: short-term rates aren’t expected to be affected by the Feds tightening things anytime soon and long-term rates are likely to see only a gradual increase. Even mortgage interest rates last 30 days have been more of the same:
- Short-term rates continue to be impacted most by Federal Reserve policy
- Longer term rates are affected more by the global economy.
Forecasters are now predicting the Feds won’t start tightening the belt till at least spring 2015.”
The article goes on to talk about what causes the ups and downs of interest rates so that prospective home buyers will better understand what these types of mortgage rates predictions are based on. Generally, when the economy improves, this also shows as an increase in mortgage rates. As the economy slowly recovers, borrowers should expect mortgage rates to gradually rise, as well. This means that there is a chance that rates could be somewhere near the 6 percent mark by the end of 2015, but that does not mean that the housing market will suffer. If rates and the health of the economy rise together, most borrowers will be able to afford a higher rate. This sort of healthy increase is something that borrowers should expect.
For the time being, however, mortgage interest rates are near the lowest levels they have been for a long time. The mortgage interest rate guide says, “The big news for mortgage interest rates last 30 days came during the second half of May as rates continued to tumble to new lows, falling 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. Rates for 15-year, fixed rate mortgages—particularly popular for refinancing—also dropped during the month. Most financial experts point to continued low rates on U.S. Treasury bonds as the reason.”
These record low interest rates over the past 30 days are pinned on geopolitical unrest and some domestic weakness in the economy, and some of the international factors may continue to impact mortgage interest rates in the months to come. But this does not mean that borrowers should be complacent when it comes to finding a home loan. The Loan Love article says, “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.”
For more information on this topic, please click here to read the full article at LoanLove.com.