3 Factors That Influence Mortgage Rates in the US


There are three factors that influence mortgage rates in the US. These are:

  • The economy and what affects it.
  • The housing market
  • The banks and what they do.

How the Economy Affects Mortgage rates

It’s very difficult to say what’s going to affect the economy from day to day, or from month to month, because it varies so much. However, when we do look at the impact of the current economy on mortgage rates in the US, the answer is pretty clear.

         The housing market and foreclosures

In short, the housing market is causing a lot of the problems. A big part of the problem has to do with foreclosures. In addition, there have been several credit reports lately that show a large number of mortgage defaults due to the subprime lending crisis. Banks have had to make up for their losses by extending less money to the homeowners. These homeowners now are in danger of losing their homes.

So, what effects does this have on the economy? In general, unemployment is going up, which makes it harder for people to get jobs. This means that the average monthly income is going down and people are looking for other ways to make ends meet.

These are all indications of the housing market being affected by foreclosure, which is causing a lot of the problems, but it’s not the only thing affecting them. It seems like the government’s stimulus plan is a little too late in coming. As soon as the stimulus money was announced, the economy went into a tailspin.

The main factor that’s causing the high numbers of foreclosures is the mortgage industry. Since most people who are trying to get out of their mortgage now have to do so because they can’t afford to keep up with the payments, the lenders are having a hard time keeping them from getting out of there. Because they’re losing money, they’re raising their rates to compensate, and it just makes things harder for those trying to get out.

A Cyclical Trend

This is a trend that goes back many years and is one of the biggest reasons why our recent history has been so difficult to fix. However, it may be time for another stimulus plan to help put it all back into perspective and stop the downward pressure on mortgage rates.

Mortgage rates are something that affects homeowners throughout the United States and in most areas of the world. There are a variety of reasons why this may be, but the fact is that they can change a lot from minute to minute and the more they change, the more it will cause an impact on the average monthly income.

When it comes to how the mortgage rates are changing, there are a couple of different ways that they could be affecting your situation. First, they could be going down because the government is trying to help, but this might cause some investors to start selling off their homes to get rid of the debt.

The Stimulus Plan

On top of this, some people are not as concerned with the stimulus package or the government’s role in helping homeowners, and the rates are still going up because of the housing market crash.

Mortgage rates could stay at the same level because of how the economy is doing. There is some evidence that suggests that they might go down even more if things don’t work out for the homeowners.

When it comes down to it, mortgage rates are going up because the economy is not working for homeowners. If the government and banks aren’t making up the lost income they used to make, they will be raised again to the levels they were before the recession. This may cause you to lose your home to foreclosure or it could keep your home and save it for you.