Why most predictions about where mortgage rates are headed are wrong
There is a lot of confusing information out there on interest rates for home buyers. It seems like every day there’s someone saying interest rates are going down and now is the time to buy.
I get why people do this, because it’s headline grabbing and gives the impression that time is running out and you should pay attention. But a lot of people who predict rates aren’t looking at all of the facts.
And simplistic predictions often offend those of us who are a bit more analytically-minded.
So, I thought I’d do a deep dive into mortgage interest rates and explore the following:
Examine the actual factors that influence mortgage rates
How mortgage rates compare and trend with other types of rates (fed funds, prime rate, etc.)
Ways that you can look at historical data to help predict the future
These are better ways to get a sense of where mortgage rates are headed.
So if you’re involved on real estate, looking to buy or refinance, or are just curious about the housing market and what might happen, I hope you enjoy this video: The Basic Truth About Mortgage Rates.