The Factors Influencing Mortgage Interest Rates Predictions
Mortgage rates predictions have been rising over the past year. A number of important factors which influence interest rate predictions are pushing rates in the same direction. Rising inflation will increase mortgage rate predictions. Higher inflation rates increase mortgage rates predictions because inflation is passed on to borrowers.
The US dollar’s fall against other currencies will put more upward pressure on mortgage rates predictions. This will happen directly, as the government raises official rates to encourage investment capital to remain in the US, and indirectly, as the rising cost of imported goods feeds into inflation. So will a credit squeeze like the current one, and so will the rising risk of foreclosurea and subsequent write-downs of house values.
July’s figures show the impact of the current housing crisis on mortgage rates predictions. Beginning as a sub-prime mortgage crisis, the rot has now spread to the wider economy. Responsible mortgages with a […]
Original post by mikejohns