QandAs: Loans

How can I forecast mortgage loan interest rates?

Answer:
Economists have spent years developing models that

attempt to predict changes in mortgage loan interest rates. Despite their sophisticated scientific analyses, no one has ever discovered a way to accurately and consistently forecast interest rates.

Interest rates are influenced by many factors, including:

Inflation
Housing Demand or the Housing Market
Government Policies
Foreign Markets

With so many variables at work, it is impossible for consumers to determine how rates will behave. Your best course of action is to shop for the best rate currently available to you and a payment you can afford. Trying to forecast rates will only lead to frustration.

Find a home and lock in. Don't beat yourself up if you regularly check interest rates or are trying to predict the best timing. It's more important that you get into the home you want at a price you can afford.


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