Interest Rates: Where Are They Going?

February 21, 2019

Buying a house is easier said than done. Not only does your client have to find the place they want to live, they also need to worry about moving costs, mortgage payments, and interest rates. One of the best ways to prepare them to buy a new house is by doing your best to research and forecast what these costs will look like. Today we want to talk to you about mortgage interest rates, and where they’re going for the next few years.

Why Do Interest Rates Fluctuate?

There are multiple reasons why interest rates fluctuate, one of those being your client’s credit score. If their credit score is higher than someone else’s, they might be able to buy the same house at an equal cost, but with different interest rates on mortgage payments. The economy and country also affect interest rates. It’s a classic case of supply versus demand. If there aren’t many people buying houses, interest rates might go up to meet the supply. In addition, inflation of our currency can cause interest rates to go up. This allows lenders to earn the same amount of money they would have when the dollar bill was worth more. 

Current Interest Rates

Currently, interest rates for mortgages are hovering around 2.375% through our brokerage. 15-year rates are as low as 1.875%. But this can obviously change between individuals. The cost of the home, down payment, credit score, and more can change how much an individual’s interest rate will be. However, if they’re looking to purchase a home immediately, this is a good estimate of what that mortgage loan interest rate will look like this month. 

Where They Are Headed

The estimated 30-year fixed mortgage rate is estimated to be around 2.5 - 3% for the remainder of 2021. However, it’s important to remember that interest rates aren’t guaranteed for your client. Like we mentioned above, their individual circumstances can affect how much interest they’ll accrue for their house. This can include the cost of their house, income, credit score, down payment, and much more.

Preparing Clients to Get the Best Deal on a Mortgage

To help your client get the best deal on their mortgage, it’s important to help them prepare. This can include working on raising their credit score, teaching them how to negotiate, or even encouraging them to increase their down payment. If you want to help your client get an amazing home, while also giving them a great deal on their mortgage, get in touch with us today. We have all of the classes and certifications you might need.