Not surprisingly, there are many factors that affect mortgage interest rates, some of which are not within your control – such as the country’s economic outlook. At a very high level, if the US economy is doing well and unemployment is low, mortgage rates likely will increase. The better the economy, the more people who are doing well and can afford to buy, so demand is high. On the flip side, if the economy is struggling and job growth is lower than expected, rates will likely decline in order to try to spur demand to borrow.
Another area beyond our control that may impact current mortgage interest rates is inflation. If inflation is on the rise, typically interest rates will follow suit.
There are more factors in the mix, including the bond market, actions by the Federal Reserve and others, however my father ingrained in me long ago the importance of “controlling what you can control,” so let’s move on to some factors we can do something about.