What Does History Tell Us About Mortgage Rates? [mortgageinsuranceguide.blogspot.com]
Average mortgage rates in the U.S. were little changed over the past week as fixed rates matched record lows, according to mortgage-finance company Freddie Mac (FMCC). "Mortgage rates were virtually unchanged this week hovering at or near record lows ... Freddie Mac: US Mortgage Rates Hovered Near Lows Over Past Week
kw.com To learn ways you can help ensure you can afford the very latest features in your next home, we turn to News You Can Use. NEWS YOU CAN USE When you take out a loan, your lender will review your credit report from independent companies that monitor your credit. Your credit report is a compilation of three key factors your credit history, information from employers, and financial information gathered from public records. Taken together, all this information is used to create your credit score, which is usually between 300 and 800. The higher your score, the more likely you will be to get favorable loan terms from your lender. Here are a few things to keep in mind to improve your credit score: • Be consistent and punctual when it comes to payments • Keep your balances well below the maximum. Accounts with high balances can hurt your credit score • Don't take out more credit cards than you need • Be careful of opening or closing accounts near your closing date, and ... • Watch your credit to debt ratio MAIN That's all for This Month in Real Estate. Thank you for joining us.
mortgageinsuranceguide.blogspot.com This Month in Real Estate (US) February 2012
 In most financial markets history does, in fact, repeat itself.  In most industrialized stock markets history has repeated itself over and over.  Bull and bear markets seem to coincide with specific events that relate very closely to past events.  The problem with comparing this to the mortgage industry is that there are no hard facts about the distant past.  Mortgage rate survey data has only been collected since 1971 and the entire housing industry has drastically changed over the last 80 years. Â
When looking at historical mortgage rates, it is quite obvious that the current long term trend is down. Â During the last major recessionary period of the early 1980s mortgage rates peaked at 17.5%. Â Since that time, rates have steadily declined to their current levels of today; around 4.8%. There have been upticks along the way, but the overall trend is down.
 At one point, there is going to be a bottom in mortgage rates which leads to a steady increase.  It is highly unlikely that rates will ever get close to 17.5% again, but if history repeats itself, they are going to have to increase well above today's historically low levels.If we know history is likely to repeat itself, now might be the best time in many of our lifetimes to buy a home or refinance.  Although many Americans are in dire straights financially, this is an opportunity that cannot be passed up.  It is alluring to try to predict the exact bottom of mortgage rates, but when looking at the larger picture of mortgage rate history, now is the best time to buy.
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