Current Mortgage Interest Rate

The current mortgage interest rate is a valuable piece of information that you need to know if you are looking into buying a home. There are many companies that offer home loans to qualifying clients. Tougher times brought more stringent rules and woke people up, somewhat. Nowadays, most borrowers run the other way when they hear about ARMs. For fixed interest loans, though, what would be the current interest rate?

What Is The Current Mortgage Interest Rate?

According to, most of the mortgage interest rates hover somewhere around 5%, which is pretty low, comparing to former brighter days. Nevertheless, the averagecurrent mortgage interest rate loan quote is a bit higher than a few months ago. Mortgage rates tend to vary according to several parameters, such as property location, down payment size, mortgage term and credit score. The above figure was calculated for a 30-year, fixed interest rate loan, which is the most common type of mortgage loan nowadays.

A random search for the current mortgage interest rate in Illinois yielded the following list with AimLoan in the lead, offering loans at a 4.625% interest rate, followed by Mortgage Capital Associates, Freedom Mortgage, GSF Mortgage Corporation, Interbank Mortgage Company, Great Western Financial Services and Truerate Partners with 4.75% and First Centennial Mortgage, Aurora Bank, My Direct Lender, Roundpoint Mortgage Company, Liberty Bank, Hometown Lending Partners, United Home Loans, Cap West Mortgage and Bridgeview Bank Mortgage with 5%. Another search for a different location yielded slightly different results, but the 5% average was still there, with some companies exceeding somewhat the 5% threshold.

How The Economy Affects The Current Mortgage Interest Rate

It’s interesting to observe how loan costs relate to the state of the economy. In upturn times, there is a big demand for properties. This is because a home is something everybody is interested in, as a house it’s considered the major purchase of most families. As most newly married couples simply cannot afford to pull $100,000 out of their pocket, they start a life in a rented place, perhaps with the help of mom and dad. Banks take advantage of this opportunity and entice the youngsters into buying a house on credit, with the undeniable benefit of living in it right away. The is when it’s important to find the lowest current mortgage interest rate. For that, the borrowers get to pay the bank instead of the landlord and in 30 years time they also get to own the house. But this may or may not work, as it’s pretty impossible to say what your income will be if you can’t work anymore in the 27th year.

Residential Factors When Discussing The Current Mortgage Interest Rate

Yet many people take the chance, which leads to demand for housing. Anything that is in demand tends to get more expensive over time. In this manner, a house that today was bought for $100,000 can in two years be sold at $120,000, not necessarily because thats its intrinsic value, but because there will be clients to pay that much for it. Speculators make a living from this artificial appreciation by buying cheaper buildings, waiting a while and then selling them at a profit. But down the line the bubble bursts and somebody needs to pay the bill of the partying. You just can’t make something out of nothing forever. Housing prices collapse and lots of people loose their homes and/or lots of money. Looking at the actual prices, in good times loans are more expensive, due to demand. In recession mortgage rates drop, lest nobody gets loans and banks loose even what they have.

In conclusion, it’s wise to be prudent. Mathematically, the best time to get a house is when it is cheap, and also when the current mortgage interest rate is low. But, regardless of economic trends, you really have to count the cost and make sure you can pay each month what you promised, whether a little or a lot, taking in consideration that things do change, especially over 30 years. A wise proverb advises to spread ones eggs into several baskets, this is especially true when discussing the current mortgage interest rate.

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