How to Foresee Changes to 30 Year Fixed Mortgage Rates

When you are looking at 30 yr fixed rate mortgage rates, it can be difficult to know when you should take action. Mortgage rates fluctuate all the time and you never really know for sure when they will go up or down. Unless you can accurately predict the future, you can not be certain of what they will do. However, there are certain things that can give you a general clue about when they will go up or down. Here are a few things to watch out for. 

U.S. Treasuries

Mortgage rates are very closely linked to U.S. treasury obligations. If you look at the 10-year treasury note, you will usually get a good idea of what the 30 year mortgage rate is going to do. They track each other very closely with about a 1.5 percent difference from one to the other. Therefore, if you see the 10-year treasury note rate going up, then you should probably expect the 30 year mortgage rate to go up as well. 

General Guidelines

The Federal Reserve helps to determine the mortgage rate by raising or lowering the interest rate that they use to loan money to banks. If the economy is down, they will usually lower the rate. If it is improving, they will usually raise it a bit. 

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