Given the sky-high prices of property nowadays, it’s nearly impossible to buy one without taking a home loan in Roseville. However, there are many aspects you’ll need to consider when applying for a mortgage, especially the interest rate. Although it may be a small percentage, it can often spell the difference between an affordable loan you’ll repay completely in the promised timeframe or a costly loan that almost bankrupts you. It also dictates whether you can buy a house at all. With so many details depending on interest rates, you’ll want to understand what affects this figure.
Mortgage Rates in Roseville California
Factors like your credit history and your down payment contribute to how much your interest rate will be, but other hidden elements influence it to a significant degree.
Here are three events that affect mortgage interest rates:
- Presidential Elections. Uncertainty causes the stock market to fluctuate, which can affect mortgage interest rates. It also tends to follow presidential elections, as a new president from a different party can bring many changes to the economy. While elections occur every four years, the possibility of change is enough to make the stock market volatile. As such, there tends to be a drop in the stock market. Investors then start to trade in stocks for U.S. treasuries instead, causing mortgage rates to fall. Generally speaking, that’s a good time to apply for a mortgage if you’re gunning for the lowest interest rates possible, but it’s best to consult with a mortgage broker in Roseville first. When the economy recovers and does well, mortgage rates tend to increase since there are less insecurity and more confidence from investors and the general public.
- Pandemics. As you have witnessed during this time, global pandemics have upset hundreds of economies and caused thousands of businesses to shutter permanently. Since uncertainty plays a crucial role in determining interest rates, it comes as no surprise that pandemics—which bring plenty of insecurity and instability to the world—also affect them. As transmission rates rise and outbreaks continue to occur in hotspots, people will feel scared and uncertain, causing rate drops. Until the situation improves and the general public has easy access to a widely available vaccine, mortgage rates are expected to stay low.
- Catastrophes and Natural Disasters. When natural disasters strike, whether it’s a ravaging wildfire, a sudden earthquake, or a severe hurricane, it wreaks unspeakable damage to cities and entire states. As people spend their resources to rebuild their communities and recover their losses, it inadvertently creates an economic burden that impacts employment and many other industries. It also affects the area’s local businesses and GDP, influencing mortgage rates. A natural disaster can also interrupt normal mortgage processes, affect property sales, and disrupt the construction industry. Suppliers may no longer be able to transport construction materials. People will no longer afford new homes because of the catastrophe, and lenders may even have had to freeze loans because of the incurred damage. Any delay in funding will cost these mortgage brokers, who will be busy confirming the status of funded loans, which they cannot sell in the meantime. With so much uncertainty—which is a recurring theme—and destruction, mortgage rates are sure to drop.
Buying a Home or Refinancing with Steelman Mortgages
Uncertainty and insecurity are common factors that cause mortgage rates to decline or increase, which can be found in these notable events. If you’re hoping to get the lowest possible rates, applying for a mortgage when any of these three events occur may give you your best chance. However, it’s always best to work with a mortgage broker to make sure you’re aware of the loan’s terms and conditions! Steelman Mortgages is a mortgage broker in Roseville that makes buying a home or refinancing your mortgage a smooth, simple, and enjoyable process. We can connect you with conventional loans, FHA loans, VA loans, jumbo loans, first time home buyer loans, and many more. Find out how we can help you by contacting us at (916) 847-7263!
