Mortgage Rates Winnipeg – Why Do Rates Fluctuate?
While mortgage rates are not the only thing that should be considered when you are deciding on the right broker, they will impact the amount you pay for your home in the long run. Due to this fact, at One Link Mortgage & Financial, we believe it is important for our clients to understand how mortgage rates work and why they fluctuate.
Mortgage rates can fluctuate over time, which is what makes the difference between fixed and variable rate mortgages so important. This is also why refinancing is a great option in certain situations.
Mortgage rates can fluctuate based on a few different economic factors. These key factors are all interconnected, meaning each factor is taken into consideration when rates are determined. Lenders, as well as the government, are constantly monitoring the economy and adjusting mortgage rates accordingly in an attempt to maximize the returns they get from their lending activities.
Lenders use forecasts, or predictions of future economic strength or weakness, to plan ahead when they are setting their rates. They use these forecasts to predict inflation rates and other economic indicators that can affect interest rates in the future and calculate that information into rates for the present.
National and local real estate markets, as well as governmental policy and money supply all, play a role in how interest rates are determined.
Mortgage rates can fluctuate because the factors that are used to determine rates are constantly changing.
As experts in the mortgage industry, we have a firm understanding of how and why mortgage rates fluctuate and we use this information to our advantage as we negotiate the best rate for your mortgage.
Give us a call today to find out how we can help you take advantage of fluctuations in current mortgage rates!