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When Will Mortgage Rates Stop Falling?

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Knowing when to stop waiting to buy or refinance a home

Mortgage rates have continued to drop over the past few months, and just when it seems like they might stop, they drop again. For those who are considering buying a new home or refinancing their current home, there may be questions holding them back: When will rates stop dropping? How low will they go? Here are some tips to help you decide.

Roshawn Watson of the website Watson Inc ( says, “Purchasing a home is one of the biggest financial decisions most people make. The amount you spend on your home often will impact your retirement, ability to pay for the education of your children, your ability to build wealth, and your overall financial solvency. With historically low mortgage interest rates and several depressed markets, this is prime opportunity to buy (or refinance) if you have an adequate financial foundation.”

According to Polyana da Costa of, it’s hard to know how long these low mortgage rates are going to be available. In an article by U.S. News & World Report (, Costa said, “Even if home prices go down another 5 percent and rates increase substantially you have to do the math there. … Is it worth getting a lower price but missing the lower [interest] rate now? [A higher interest rate] is going to hurt you more financially in the long term.”

While you weigh the decision whether to wait to see if prices continue to fall or start to rise again, it’s important to take your own personal financial stability into consideration. Watson says, “Often missing in the discussion of mortgage debt is the ratio of your mortgage to your annual income.” You want to make sure that whatever mortgage you choose to go with works with your income, making it more feasible to pay it off. Watson makes two valuable suggestions when considering a mortgage:

There is no easy way to tell what mortgage rates are going to do in the future, but if you have questions about buying a home or refinancing your current home, stop by to speak with our financial professionals, who are available to answer all your questions.

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