Team Lauer: Mortgage Lenders and Realtors

Factors That Affect Mortgage Rates

Several factors can influence the interest rate you'll be offered when you're looking to get a mortgage. The general state of the economy is among the main determinants. Mortgage rates are frequently higher when the economy is booming. However, if the economy isn't doing too well, you might be able to negotiate a lower rate.

Inflation is a further element that may impact mortgage rates. Mortgage rates may increase as a result of sharp price increases in goods and services. Mortgage rates could be lower though if inflation is low.

Last but not least, mortgage rates may also be influenced by the Federal Reserve, which manages the nation's money supply. To make things more challenging for people to borrow money, they might raise interest rates. But they might cut interest rates if they want to make it a bit easier for prospective homeowners to borrow money. Therefore, the monetary policy of the Federal Reserve has a significant impact on how much a mortgage will cost you.