Tom Spaniel

Preston Hollow Financial Services, Inc

  • Home
  • About
    • About Us
    • Privacy Policy
    • Recovery Fund
    • Terms of Use
  • Resources
    • First Time Home Buyer Tips
    • First Time Home Seller Tips
    • Closing Costs
    • Home Appraisal
    • Home Inspection
    • Loan Checklist
    • Loan Process
    • Loan Programs
    • Mortgage FAQ
    • Mortgage Glossary
  • Reviews
    • Google Reviews
    • Facebook Reviews
  • Services
  • Apply
  • Blog
  • Contact

What Causes Mortgage Interest Rates To Fluctuate?

March 26, 2019 by Tom Spaniel

What Causes Mortgage Interest Rates To FluctuateThe mortgage interest rate represents the cost of borrowing money to purchase a property. Mortgage interest rates are not fixed; that is, they fluctuate from one period of time to the next.

Many different factors play into what your mortgage interest rate will finally turn out to be. Some of these factors have to deal with the economy and government decisions. Other factors have to do with your personal financial situation.

Finally, mortgage interest rates can differ between lending institutions, which is why you may get different mortgage interest rate quotes from different places.

Economic Factors That Cause Mortgage Interest Rates To Fluctuate

Mortgage interest rates are somewhat connected to the stock market. When the stock market indexes go up, mortgage rates tend to rise as well. The Consumer Price Index is a measure of inflation rates. When inflation rises, you can expect to see mortgage interest rates go up, too. Other economic factors that affect mortgage interest rates include Data from the Gross Domestic Product, Consumer Confidence, and Home Sales reports.

Government Decisions That Lead To Mortgage Interest Rate Changes

The federal government keeps close tabs on the economy. Government officials are always making adjustments in order to keep the economy strong. Periodically, the government will raise or lower key interest rates in order to adjust bank lending economics. When the government raises or lowers the Federal Funds interest rate, it is always announced in the media.

Personal Financials And Your Mortgage Interest Rate

Finally, your personal financial situation influences what kind of mortgage interest rate your lender offers. A higher credit score will generally get you a lower mortgage interest rate. This is another reason why it’s always a good idea to review and improve your credit score before applying for a mortgage.

When you are ready to apply for a mortgage, meet with a trusted home mortgage professional. Because mortgage interest rates fluctuate often, you could find that the interest rate gets higher in the short time in which you’re still shopping for your home. Once you do find an attractive program for your personal situation, be sure that you are ready to take the necessary steps to lock in that rate.

 

 

 

Spread the Love!

Filed Under: Mortgage Tagged With: Interest Rates, Market Conditions, Mortgage


Contact Tom


Loan Officer
Preston Hollow Financial Services, Inc
CALL (214) 802-9266

NMLS #228693
GET A RATE QUOTE  

Top Dallas Mortgage Brokers
Expertise.com

Reviews

Connect with Me!

Let’s Keep In Touch!

  • This field is for validation purposes and should be left unchanged.

Browse Articles by Category

Quick Links

  • Recovery Fund
  • Privacy Policy
  • Terms of Use
  • Contact
nmlsconsumeraccess.org
Equal Housing Lender

Our Location


13709 Braemar Dr
Farmers Branch, TX 75234

Copyright © 2023 · Powered by MySMARTblog