How Long, Will Mortgage Rates, Stay, Low?

How Long, Will Mortgage Rates, Stay, Low?




If we had workable, crystal balls, wouldn’t it be easier to predict trends, and what, the future, would bring? However, since most have not found, their personal version of a reliable form of these, it might make sense, to better understand, some of the signs, and omens, which might be useful, in providing us, with more information, to make an informed – decision! One of these applicable issues, is, related to mortgage rates, and calculating, whether/ if, and, for, how long, these interest rates, will keep, as low (or close), as they are, today. With that in mind, this article will attempt to, briefly, consider, examine, review, and discuss, some applicable factors, to focus upon, in these considerations, and evaluations.

1. The so – called, experts: The funny thing, about experts, is, they don’t all agree. When it comes to interest rates, this may, already, be, more – so! The great majority of today’s economists, who specialize in this area, believe, we will probably, see little meaningful change, in these rates, until, at the minimum, after the 2020 elections. Their reasoning, it seems, is based on a few factors, including, political considerations (the President is seeking reelection), fear of risking economic turmoil, etc. However, they, also, warn us, this may not be the fact, if inflation escalates suddenly, as it might, and other, real, and/ or, perceived risks, etc.

2. Outside influences: What might be the ramifications of the possible, escalation of trade wars, because of the tariffs, imposed, and/ or, the rhetoric of President Donald Trump? If the war – of – wills, with China, continues for a meaningful period, it will make everything more expensive, such as building supplies, electronics, machinery, etc. If, Japan and the current administration, fail to come to some mutually permissible agreement, this will create additional stress on the system. How about the impacts, from our conflicts with our allies, including NATO, the European Union (EU), United Kingdom (because of BREXIT), etc?

3. Economic considerations: If trade wars expand, or already, if many perceive instability, etc, these economic considerations, might affect, the number of possible, qualified, home buyers, who are ready, willing, and able, to seriously consider, buying a house, That would transform the real estate market, from a sellers, to a buyers market, and, this might, have an impact/ effect on mortgage rates, partly because of, supply – and – need!

4. Supply and need: Like, nearly, every other aspect of economics, supply and need, has a major effect, on real estate, also.

Proceed wisely, and pay, keen attention, to, the effects of a variety of factors, on the future level of interest rates, and, consequently, what mortgages, might cost. A wise consumer, who educates himself, is best prepared, and ready, for any contingency!




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