30 Year Mortgage Rates

30 Year Mortgage Rates

One of the most popular types of loans in the United States is the 30 year mortgage. And, with 30 year mortgage rates at an extremely low point, now may be the best time to buy. However, like anything in the financial world, there are several important things you should know before locking yourself into a 30 year loan.

How to get the best 30 year mortgage rate

First, you need to determine if today’s mortgage rate is actually that good. To find this out for yourself, look up some of the trends for 30 year mortgage rates online. This will allow you to easily see the trajectory that the interest rate is on, and could provide you a glimpse into any future movement on the chart. If you have any experience in market analysis, now would be a great time to use it.

Of course, not everybody is experienced in stock market analysis. Instead, it’s better to rely on the opinions of professional analysts, who predict trends in the market for a living. By utilizing the experience of these individuals, you should be able to get a better glimpse of where the rate will be in a few months. Obviously, if the rate is lower than it is now, then you may want to wait before taking out another mortgage, as even a few percentage points of difference could have an impact of thousands of dollars down the road.

Keep in mind that, with any fixed rate mortgage, the interest rate is generally higher than it would be if you were to choose a short-term fixed loan. This is a symptom of the inherent risk of the financial market: put simply, banks don’t want to miss out on profit down the road because you locked into an advantageous mortgage thirty years ago. For that reason, it’s important to look at the fees and monthly payment of your 30 year mortgage, as you may be better off by choosing another term.

What affects 30 year mortgage rates?

Many people believe that inflation and the rate of 10-year treasury notes both affect the 30 year mortgage rates. However, this is not the case. Although each of these factors help predict movement in the mortgage rate, they do not directly affect it. Instead, the market price for Mortgage Backed Securities (MBS) is what directly impacts the mortgage rate market. Just like any bond, the higher the demand is, the lower the cost of borrowing will be.

So, if you want to look more deeply into timing the perfect 30 year mortgage rate, then you may want to analyze recent economic trends. If the stock market is doing poorly, for example, then people may want to flee to safer haven markets, like bonds, which will drive the price of mortgages lower. Theoretically, this will help to stimulate the economy. And, if you’re planning on taking out a 30 year mortgage, then this would be the best time do so.

What affects 30 year mortgage rates?If timing the market isn’t your thing, or you don’t want to spend too much time worrying about trends, or analyzing the markets, then you may be better off locking into a 30 year mortgage rate today. Rates are already low, and if a few percentage points of difference isn’t worth the stress and nervousness of gambling with the market, then you might as well lock in a thirty year rate today and avoid all of that hassle. In the long run, it’s only a few hundred – or possibly, a few thousand – dollars spread out over a period of thirty years. Is all that time you spend researching really going to matter in the long run? If you can answer that question, then you will know if a thirty year mortgage is right for you.