Making mortgage rate predictions is serious business. Having the insight to make an accurate interest rate forecast is next to impossible even for the most experienced brokers.
We have not seen a mortgage interest rate above ten percent since the 1980's. We are fortunate to live in a time where fixed rate mortgages average seven percent and even lower on variable rate loans.
What's next?
 |
Trust no broker that guarantees you what the current interest rate will be next week. First mortgage rates, second mortgage rates, and refinance rates are way to variable day to day for an accurate mortgage outlook.
We can make good mortgage rate predictions though in the long term by examining past interest rate cycles for a reliable projection. Using our 20/20 hindsight actually gives us good foresight. At least in the encumberance business.
We can predict mortgage contract interest rates by noting the approximate seven year cycle. Today's interest rates rise and fall in a cyclical pattern. Interest rates don't jump around so we can predict mortgage rates by examining where we are on the cycle.
Pull up a chart (use the search box below and input the phrase "mortgage rate chart"). Note the mortgage rate trends. Making mortgage interest rate predicions is a matter of looking at history and knowing that it predicts your future.
I have an obligation to let you know what happens between mortgage rate cycles. Making a mortgage rate prediction between cycles can seem confusing. Rates will seem to vary wildly for about a year between cycles. It's a sign mortgage rates are heading in the opposite direction.
