How to Make Mortgage Rate Predictions
Making mortgage rate predictions is difficult to do, but several pieces of data are analyzed, and the Federal Reserve is monitored to figure out when rates will be low. Find out how mortgage rates are predicted with advice from an experienced mortgage broker in this free video on personal finance.
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Hi, this is Matt McKillen with Innovative Financial Group, a question post to me today was "how do you make mortgage rate predictions?" Well, I've been in the business for twenty one years, and there's a whole bunch of data that's involved in affecting what happens with our interest rates. And it is very, very difficult to predict. Part of it is based on what the Fed is lending their money to the banks at, another thing that affects rates on a daily basis, is the stock market. If the stock market is actually doing horrible, it actually helps promote better rates for us. So just as it's very difficult to determine what the stock market is going to do on a daily basis, because it's affected by daily economic reports or world events, it is really difficult to predict what the short term or long term interest rates are going to do. There's many economists out there that specialize in trying to predict that for banks and for the Fed, but really, on a case by case basis, we just have to kind of follow along and see what's going on in the industry as a whole and try to get a gut feeling on what we think rates may do in any thirty to sixty day period. It's a difficult, very difficult call to make. Again, my name is Matt McKillen and I'm with Innovative Financial Group.