Mortgage rates recently caught a beautiful break. Although they were lowered down, they still, however, remained close to the highest rates of 2015. This is mainly because lenders are careful when revising their rating sheets.
Mortgage rates lost some ground in the past weeks. However, in the past couple of days, mortgage rates gained this ground back. Lenders have not made any changes to their rating sheets. This is why people are experiencing high interest rates on a daily basis. However, lenders are now rethinking their rating sheets. This is because less and less people are purchasing homes. Going further, more and more people are being denied a mortgage, especially when it comes with a high interest rate.
Right now, interest rates are at their highest. In previous years, it was safe to get a 30-year mortgage because this was the way to keep a very low interest rate. However, today, a 30-year interest rate is not too different from a five-year interest rate. People in this financial department believe this is sad.
A lot of people are talking about how the recent events in Europe have affected the United States. However, there are things going on in other parts of the world that have affected the United States, too.
Recently, in Greece, they had a big meeting that was to address their international credit system. After the meeting, the interest on mortgages was in a better position. This made the interest on mortgages in the United States in a better position, as well. However, Greece will soon have another meeting. Sources say this meeting will not go as good as the last. It is possible that the interest rates on mortgages will not be so good. It is also possible that this could badly affect the interest rates on mortgages in the United States.
Sources also say that any good news is bad news. This is because if interest rates seem okay, the Federal Reserve is likely to raise interest rates. However, these sources do not predict the rising of interest rates by the Federal Reserve until after the heart of winter. The housing market is in great anticipation over this because they do not know how good or how bad things will get. From how bad things are financially, it will take a financial miracle in order to restore peace concerning interest rates.
The housing department now has to wait until this passes in order to see what the future holds. Many housing financial institutions must raise their interest rates due to global problems. However, this means less people will be going for a mortgage. Going further, less people will be getting approved for a mortgage.
Likewise, investors are waiting before they invest money in the housing market. An investor will hate to invest money in a home if he will not make his money back. Furthermore, this investor will have interest rates that are more than the mortgage. This will make the investment worth nothing in the end — this is sad.