Looking to buy a house, but not sure where to start? Your mortgage rate could be one of the biggest decision-making factors. But how do you know if what you’re being offered is a good deal? It can be difficult to know what mortgage rates will be in the future. But, when you have the information you need, it’s easier to make an informed decision. That’s why this article is for you. Keep reading to learn more about mortgages, and how to find the lowest mortgage cash back.
Mortgage rates: What’s Going on?
Mortgage rates have been going up for the last few months. They’ve been climbing steadily since the middle of March. But, what’s causing this rise in mortgage rates? There are several factors that are causing the increase in mortgage rates. Some of these factors include:
Interest Rates: The Federal Reserve is raising interest rates to protect against inflation and rising unemployment. Inflation is a concern because it can cause an increase in prices, which leads to an increase in wages and salaries.
Unemployment is also a concern because it can lead to an increase in borrowing costs, which increases unemployment even more. These two factors are the main reason why interest rates are going up.
Banks: Banks are increasing their interest rates to make more money on their loans and lessen their risk of lending too much money and not being able to pay it back at all when interest rates go up again in the future.
Loan Limits: Banks have limits on how much money they are able to loan out to borrowers. This is because banks don’t want to lend too much money, because if they do, they could lose money if interest rates go up again in the future and the borrower can’t pay back the loan.