A lot of people looking to purchase their dream home almost always look at mortgage rates predictions. But these mortgage rates predictions are not that accurate. You have to remember that knowing what the predicted mortgage rates are not going to be the basis for you to buy your dream home. Looking for a home loan can be the most expensive purchase you will ever do in your lifetime. So you need to understand and learn the many factors that affect your purchase. You will be better off if you would try and determine how much can I borrow for a mortgage. Trying to predict where the interest rate. will go is not an easy thing to do.
No one can ever foretell in certain terms what the rates are going to be a year or so from now. There are many factors they have to contend with in predicting where mortgage rates will go. There are calculations and statistical formulas as well as financial and economic factors that can influence the rise and fall of interest rate. So they cannot tell you in absolute terms that they can make and accurate forecast as to what you will be looking at in terms of your mortgage rate.
These experts and economist are trying to calculate what may happen or will be the projected interest rates in the future. What they are trying to convey here is the short term or the long term rates possible trend. For instance, the short term trend will stable and the long term trend will be going up. Things like this are what they are basically trying to do. But they do not put numbers as this is impossible to do.
With the ever changing economic conditions that are affecting the entire world that was brought upon by the US mortgage and financial collapse, it makes it harder to make any forecast. These uncertainties that we are now facing can make even the pros and seasoned economist and bankers to make unreliable forecast. With governments and private sectors trying to wrestle with the collapsing financial institutions and preventing their collapse, it is more difficult to make any assumptions. These calculations and models they use before are not that accurate enough to make traditional forecast as to where rates are going.
The price of fuel or gas and food is increasing by the day and it seems that there is no end in sight. Rising prices of commodities, fuel or gas and food are indicators of inflation. And when there is inflation, there is pressure for all mortgages rate to go up. But you cannot just move the rates higher when there is too much of homes for sale and no buyers.
Rather than trying to determine what mortgage rates predictions are, it would be smarter to know how much can I borrow for a mortgage. Knowing how much you can afford to borrow would make more sense rather than concentrating on mortgage rates predictions. Calculate a mortgage and know what you can afford for a home loan and that will be the best way to start.
Source by Juling Gabas