Wouldn’t it be super to know upfront what the mortgage interest ratewould look like in the near future. Especially in these shifting times. Based on past events, we can not make predictions that are 100% accurate, but we can make a pretty educated guess.

Lender ads are all over the place, boasting super low interest rates. The fact that only individuals with an above 700 credit score are entitled these low interest rates is frequently not brought up in the advertisement. Besides the high credit prerequisite, you will frequently need to make a big down payment to be eligible for a below five percent interest rate. If you don’t have a spotless credit report, like most of us, you will have to pay a bit more interest.

During the last few months, interest rates have consistently gone down. What everyone wants to know is when the market will hit it’s bottom. Buying now may be a losing proposition, because interest rates may sink even further. But if you hold off on your decision, and interest rates suddenly go up, you also lose.

Mortgage applications are pouring in the past couple of months. Due to the sudden rise in applications, lenders can’t keep up. Mortgage interest is positioned to keep going down, but we will see a bounce in the near future.

This bounce is not a negative thing. What you want to do is wait it out and buy when interest rates are coming down again. The mortgage market will reach it’s bottom in that period and you can profit from it. getting a fixed rate mortgage if you can. By making this decision, you lock in the low interest and protect yourself from interest climbing again.

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