Owing to the sharp increase in interest rates in 2018, there was a significant reduction in the number of people who applied for mortgage loans. In order to make profits, lenders are now in a cat and mouse race eager to get more people to apply for loans.
It is easy for a borrower looking to apply for a mortgage loan to get a rejection letter numerous times. Many aspiring homeowners now have to persist by making several applications to get the coveted approved response.
As a borrower, it is prudent to always stay in the know. By knowing how the future looks as far as the Mortgage interest rates are concerned you know what to expect. So to let you in on some valuable information here is an in-depth analysis of Arizona mortgage interest rates in 2019.
Will The Interest Rate Remain Constant in 2019?
The mortgage interest rate may be lower now than they were last year. This is good news for the borrower but a greater majority of people can’t help but wonder if the rates will remain that way. Mortgage rates have reduced down to 4% which is a record low and the biggest drop within this ten-year period.
This strident reduction in rates is credited to the influx in the number of borrowers looking to take advantage of the low rates. A person looking to get approved for a 15 year fixed or adjustable mortgage loan, for instance, will repay it at a record low of about 4.17 percent.
But the biting question is: will the rates remain this low? The truth is that there’s no sure way to tell. There are too many seen and unforeseen factors that may affect loan rates. This year may be great for most borrowers but there’s a high chance that things may change suddenly without notice in the future.
The interest rate has a pattern of going down for months only to shoot back up when you least expect it. It is often a case of too little too late when most borrowers run to lock in their loans.
Factors That May Affect Fluctuations in Interest Rates
One of the major factors that may have an effect on rates includes the Federal Reserve. It has the freedom to announce an increase or a decrease in interest rates depending on the current economic demands.
Inflation is another huge determinant on Mortgage rates. Rising prices of basic needs may swing the rates higher or lower. In 2019, inflation levels have remained low and constant which is music to the ears of mortgage shoppers. The higher the rate of inflation, the higher the interest rates are bound to get.
The stock market, unemployment rates, are other examples of the many factors that can affect interest rates. If the factors remain constant, the rates stay constant but if these factors increase, the interest rates follow suit. Investors are very more keen on seeing what the future holds in the next half year, full year or one and a half years
Bottom-line
Whether you are looking to buy a new home or to refinance your home loan, waste no time. It is advisable that you take the plunge and apply for a mortgage now when the rates are low. After all, this may be the best rates you will ever get in a long time. Are the rates going to go any lower than they are at the moment? The verdict is still not out but it is quite unlikely. If anything, most experts are predicting higher rates in a couple of years to come.
