Posted on: 01st Oct, 2009 06:32 am
What are the factors that will cause mortgage interest rates to drop?
that would take a week to answer
Most important factor playing role in dropping of mortgage rate is Inflation. This inflation is directly proportional to interest rate. As inflation reaches higher the interest rates will be automatically higher side.
Another factor may be Volatility Index. Volatility index means rate may be volatile then lenders prefer high rate interest. As there is uncertainity observed.
Another factor may be Volatility Index. Volatility index means rate may be volatile then lenders prefer high rate interest. As there is uncertainity observed.
well, that was concise and oh-so appropriately confusing.
i don't think that interest rate is directly proportional to inflation.
a balance between money supply, inflation & interest rate is required to be maintained
a balance between money supply, inflation & interest rate is required to be maintained
there are many factors that go into mortgage rates dropping all of which you can find by scrolling through this great site