WHAT ARE THE INTEREST RATE POSSIBILITIES
So what does this mean for homebuyers and homeowners? Home loan rates are tied to mortgage backed securities, which are a type of bond. Many factors impact the performance of both stocks and bonds and play a role in the direction of home loan rates. For example, an improving economy, higher wages and higher inflation could all cause home loan rates to rise. However, a faltering economy or turmoil overseas could drive investors to seek out “safer” investments like bonds, which could help keep home loan rates low.