4.25% 30 Year Fixed Rate
Loan Amount
Loan Type

Program Rate APR
30-Yr fixed 4.750 % 0.7 to 1
15-Yr fixed 3.750 % 0.7 to 1
5/1 ARM 3.125 % 0.7 to 1
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Will Mortgage Rates Drop?

A question on the minds of many Americans is quite simply: will mortgage rates go down? For anyone looking to buy their first home or refinance their old one, this is a crucial question. US mortgage rates have a huge effect on the total cost of a house. The higher the rate, the more interest you have to pay back to the bank. Differences in this can mean paying hundreds of thousands of dollars more on your mortgage!

So will mortgage rates go down? That is difficult to answer. In 2008 the stock market and the economy took a severe downturn along with home value and mortgage rates. Interest rates have been kept as low as possible since then to help with the housing recovery. With that in mind, most US mortgage rates are at the lowest they have been in decades. Going much lower than what they are at now would be extremely unprecedented and quite rare.

Is it possible though? Certainly, the housing market is still in recovery and is quite weak. Any blows to the economy could result in lower rates. With the recent downgrade of the United States’ creditworthiness from AAA to AA+ would, in normal times, indicate the interest rates across the board may rise. Given the present economic policy of low interest rates and cheap credit, this may not necessarily occur.

Many reports indicate that the rates will remain their lowest for the next nine to twelve months, making it a prime time to buy. After these twelve months there may be an uptick in interest rates, though this will likely be slow to occur. The housing market is fully expected to remain depressed for the next five years at least.

Regardless, if you are looking to purchase a home and your finances are ready for the commitment, today is the best time to do so. Not only are mortgage rates extremely low, but real estate in general is still the most depressed it has been in many years, with some properties going for a fraction of what they previously sold for. This means you could get a home for 30% less than it is worth and pay extremely low interest on the mortgage! Is that not perfect?

If you are ready to buy, do not stress about rates dropping and you missing a deal. The deal of a lifetime is in front of you right now. Good luck!