Want to learn about Interest Rates?
Before searching for the lowest mortgage rates today, let’s learn the history of interest rates in America. According to Wikipedia the Federal Reserve Federal Funds Rate in the United States has varied between 0.25-19 percent from 1954 to 2010.
Interest Rates did go as high as 19% in America at a time, but don’t be surprised because In Germany the rates were as high as 90% in 1920.
It’s a shock for many of us Americans, these days even 6% sounds really high. In the late 1970’s and early 1980’s America experienced the highest Rates and today we are already at the lowest we have ever seen, but, according to economists, we have not hit bottom yet.
Why Interest Rates are changing all the time?
Many economists think lower rates will give a gain in economic activity, short term of course, and then will offset by inflation. This is one of many reasons the U.S is experiencing historically low Rates. The economy is not the best we have seen and many U.S officials, economists and other politicians in congress are trying to make a change. Experts say that the change in the rates early this year, 2010, already rose the spending in America and the economy is already getting better as a result. I don’t believe so, because even when interest rates are at their lowest homeowners still cannot refinance their homes and/or purchase new homes because Fennie Mac and Freddie Mae have tightened their guidelines.
How do we really know if we did get the lowest mortgage rates today?
There are different options for you to seek for low mortgage rates today. What you really have to understand is the way mortgage lenders work and monetize their business and please remember that mortgage lenders are in this business to make money. Why every mortgage lender offers you a different mortgage rate today if there is only one mortgage rate in America?
Mortgage lender uses the index which is the actual Interest Rate and they add their Margin. The margin is the mortgage lender’s real profit. You should know that you can always negotiate the “Margin” with any mortgage lender because they want your business. This is a good way to get the lowest mortgage rates today.
Now that you understand why the interest rates are changing all the time and you know how high and low they can get, you can go ahead and search for a good interest rate that will lower your mortgage payments. Don’t ever take the first offer just because the mortgage Interest rate you’ve been given sounds good. You could find a lower offer from another mortgage lender. Compare mortgage rates today and get the lowest you can possibly can.