Economic Weakness Can Lead To Lower Mortgage Rates

Economic Weakness Can Lead to​ Lower Mortgage Rates
So you've been careful with your money all these years and have always put some aside for a​ rainy day? Good for you! Even when the​ economy is​ weak,​ those who plan ahead can benefit from its downturn by taking advantage of​ market conditions .​
Even mortgages can benefit during tough economic times as​ rates tend to​ drop when weak economic data is​ reported .​
How can you​ as​ a​ savvy consumer benefit from this? It's as​ simple as​ following the​ numbers!
Weak economic data usually means that consumers are pulling back on​ spending and are concerned about their jobs and other financial matters .​
as​ a​ result,​ the​ mortgage market usually sees a​ drop in​ demand for mortgages and a​ drop in​ the​ interest rate charged for mortgages .​
Those who have put off buying a​ house for some time and have stellar credit may find that during these economic downturns they can get more house for less money and a​ great rate to​ go along with it!
As always,​ it​ pays to​ keep on​ top of​ mortgage rates which often change week to​ week .​
If you​ are thinking of​ taking on​ a​ new mortgage one item that you​ should pay attention to​ that could potentially raise the​ rate is​ inflationary data .​
When the​ market sees data that shows inflation are going up,​ mortgage rates tend to​ rise as​ well .​
After all,​ the​ value of​ a​ dollar becomes less as​ inflation is​ factored in​ .​
If you​ are thinking about buying a​ house you​ could potentially save yourself as​ much as​ half a​ percentage point just by knowing when the​ Fed releases inflationary data and locking in​ your rate before that if​ you​ think the​ data will show inflation is​ on​ the​ rise.
Just like in​ the​ stock market,​ for the​ real estate investor out there - or​ even those looking to​ buy a​ new home - the​ best time to​ buy is​ when the​ market is​ down .​
the​ house that may have been outside your price range could suddenly be reduced tens of​ thousands of​ dollars .​
Combine that with an​ interest rate that is​ half a​ point to​ a​ point lower than what you​ were expecting and soon you​ find that a​ house that you​ thought would be a​ struggle to​ afford is​ a​ comfortable financial fit!
The economy rises and falls,​ but over time it​ all evens out and most everything - including housing - stabilizes .​
By planning your real estate purchase and keeping your credit in​ shape you​ can set yourself up to​ take advantage of​ the​ economic downturns and come out of​ it​ in​ better shape financially than you​ thought possible!
It's a​ buyer's market out there - take advantage of​ it!
Economic Weakness Can Lead To Lower Mortgage Rates Economic Weakness Can Lead To Lower Mortgage Rates Reviewed by Henda Yesti on June 30, 2018 Rating: 5

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