How Often Do Mortgage Interest Rates Change?

By Bob Redtree

How often do mortgage interest rates change? For the prospective home-buyer, this can be a rather bothersome question. After all, the decision whether to buy now or wait for the perfect house can be tied to this very question. So how long will these great rates be available? Should You wait it out, or act now? How often do mortgage interest rates change?

Economic

The rate one can obtain on a mortgage is contingent upon a number of factors– Both across the board and specific to the individual. The standard fixed and adjustable mortgage interest rates are set by the U.S. Federal Reserve. They set these rates using several different formulas that essentially attempt to keep the market in balance, as to avoid too much supply/demand.

Local

Moving further down the chain, factors such as the locale and its real estate statistics can result in higher or lower mortgage interest rates. If foreclosures rates for a specific area are above average, one can expect the rate available to be up to a few points above the base rate. Likewise, when foreclosures are lower than average, the rate may be marginally better.

Personal

The most significant factor in one’s available mortgage interest rate is personal credit history. To be even considered for a loan, one must have demonstrated exceptional responsibility in their credit report going back several years. Also expected is the demonstration of means. If the amount you desire to mortgage is what the bank considers below average for individuals in your income bracket, you can expect a slightly better rate.