Having a crystall ball that told you if mortgage rates would rise or fall would be awesome. Especially in these uncertain times. Based on recent events, we can not make predictions that are 100% certain, but we can make a pretty educated guess.

You see many ads telling you that you can get super low interest rates on your mortgage. The fact that only consumers with credit score over 700 qualify for these low interest rates is oftentimes not cited in the ad. Besides the high credit requirement, you will oftentimes need to make a big down payment to qualify for a below 5 percent interest. If you don’t have an immaculate credit report, like most of us, you will have to pay a bit more interest.

Interest has gone down steadily the last few months. What we all want to know is when the market will hit it’s bottom. Buying now may be a losing proposition, because interest rates may go down even further. But if the interest rates go up tomorrow, you’ve lost your opportunity by trying to time the market.

A large amount of people have applied for for a mortgage these last couple of months. Many lenders have tried to slow the application flow down by increasing their fees, because they are flooded with mortgage applications. Mortgage interest is positioned to keep coming down, but we will see a bounce in the near future.

This bounce is not a negative thing. When interest rates are going down again, you know that the bounce is done and that the time to buy has arrived. When the bounce is over, the market is very close to it’s bottom. A fixed rate mortgage might be a great idea when you buy a new home. Interest rates will rise once more and by deciding on a fixed rate mortgage you protect yourself and your family against this.