How a Fixed Mortgage Rate Works and Why It’s Better Than Variable Rates

In terms of interest rates, mortgages can be categorized into two kinds – variable rate mortgages and fixed rate mortgages. Variable rate mortgages (also known as adjustable or floating rate mortgages) are those with an interest rate that changes according to market conditions and the lender’s discretion. With fixed rate mortgages, the interest rate stays constant throughout the tenure of the loan, irrespective of any ups and downs in the economy. [Read more…]

Buying a Home Becomes More Expensive as Mortgage Rates Rise

Even as real estate developers and analysts eagerly await the spring season which is traditionally the best time of the year for sellers, mortgage rates are rising, following the Fed’s cautious step backwards from its mortgage purchase program. [Read more…]

Mortgage Market to Remain Stable with New Investors Filling the Fed Void

Investors are wary of the direction that the housing market may take, now that the Fed is no longer supporting it. However, analysts believe that the sector will not be subjected to much turbulence in the form of soaring interest rates because other investors who have been waiting in the wings for sound investment opportunities will fill in the void. [Read more…]

Home Construction Rates Fall But Still Exceed Expectations

Although home construction rates declined in the month of February, they still exceeded the expectation of analysts and economists. The government published the home construction statistics recently, which revealed this trend. [Read more…]