A Guide to Lower Interest Rates in New Hampshire
You can SAVE BIG if you understand a few basic economic principles and how they relate to you. If you understand what makes our nation’s economy tick, you can save thousands of dollars on everything from your mortgage to your credit cards.
For example, take a $200,000 mortgage: the difference in monthly payments between a 30-year mortgage at 6% and at 7% is $$131.50 a month. That’s $47,341.79 saved over the life of the loan.
What Factors Affect Mortgage Rates?
Most “macro-economists,” spend a lot of time studying national trends and the fundamental forces that influence local mortgage rates here in New Hampshire. Even though it might be hard to predict when theses forces will come into play, it’s important to know what they are:
- The amount of money saved by business and households
- Business demand for funds to finance capital investment
- The U.S. Government’s supply or demand for funds
These forces ultimately weigh on the inflation rate which is the most influential factor in determining what mortgage rates will due. Inflation pressure is most easily monitored by leading economic indicators such as:
- Department of Labor Employment Reports
- Employment Cost Index
- Gross Domestic Product
- Consumer Price Index (watch this one closely)
- Producer Price Index
Bottom Line: Bad is Good.
You can’t predict what rates will be in the future. If you could, you would be infinitely wealthy. What you can know is that good economic news reflected in any of these economic indicators is inflationary by nature and will cause rates to go up. The moral of the story is: "Bad economic news is good for mortgage rates."
For details on saving money on your next mortgage loan, call Charley Farley at (603) 471-9300 or e-mail charley@charleyfarleyhomeloans.com.