Mortgage Rate News

As the housing market continues to feel the pinch of the subprime lending crash, changes are being made. Indeed, as lending standards tighten, home mortgage loans are becoming less attractive and demand is down. So, what is to be done? For some lenders, dropping the mortgage interest rate is the answer. 

Mortgage News Daily reports on the state of the housing market:

“Several factors contributed to the softening in housing markets this spring. In addition to the tightening of lending standards earlier this year, especially on subprime loans, the 40 basis point jump in rates on 30-year fixed-rate mortgages in June may have deterred potential buyers. For the year-to-date, sales of single-family homes were down about 9 percent from the first half of 2007.”

With housing demand down, lenders are being forced to lower their interest rates. Mortgage interest rates are heading down, and this can be good news for many homebuyers.

The subprime lending market isn’t just affecting the U.S., either. The effects of this are spreading around the globe. Lenders, fearful that demand for mortgage loans could fall further, are waking up to the idea that they may have to offer better terms — to those with good credit at any rate.

If you have good credit, you might be able to get a better mortgage interest rate. Consider that a lower interest rate can result in a savings of thousands — even tens of thousands — of dollars over the life a home mortgage. Most of what you pay when it comes to buying a home is the interest. And the better your interest rate, the less you pay. Shop around for the best of the mortgage loans, and find a lender that will give you a good mortgage interest rate.

Tags: mortgage loans, mortgage interest rate, home mortgage loan, home mortgage,
housing market, subprime lending crash, good credit