How much will your home rent for?
But in one way or another most people don’t know or are misinformed about what really happens when the mortgage interests are low. Basically, lower rates are inversely correlated with the stock market and this further means that when interest rates remain low, the stock market is down.
The first trend that has been pinpointed by financial and economic experts was that mortgage rates will slowly increase. In 2010, mortgage rates was in the 4% range and this has been considered astonishingly low. Between 2011 and 2012, the Mortgage Bankers Association expects that these low rates will slowly increase from about 5% to 6% which could mean more money out from the pockets of home buyers.
The demand for mortgages is also predicted to fall because of the continued slow economic growth and overall lack of consumer confidence. Because of this, refinancing applications may fall. Since mortgage rates are assumed to rise, the number of refinancing applications may decrease and this can further decrease the number of borrowers who qualify for the mortgage or refinancing.
Better be aware of the following mortgage trends if you are thinking of buying a property or applying for a mortgage this year. This is how the new face of mortgage applications will look like – stricter mortgage requirements and policies, mortgage interest rates are increasing and you will have less mortgage options for your home purchase.
Buying Austin Real Estate can be a very complicated experience given the rising mortgage insurance that reduces qualified home buyers. However, make sure that you consult real estate experts who knew the ups and down, recent trends and changes. Get information from North Lake Real Estate LLC for mortgage trends, options and buying real estate.