House Loan Interest Rate
With the interest rate dropping- will our house loan have a lower rate?
We are about to begin building a house, and when wea are through (about sept) the bank will set our interest rate… with the interest rates dropping- is that good for us? or does that have no effect on our loan? Thanks!
Yes, today’s action will result in a lower rate (not 3/4 of a percent lower as expectations are built into mortgage rates and many people were expecting a half percent at next week’s meeting).
If the economy somehow/someway gets much better in the next nine months and expectations are for higher interest rates, your rate will go up. You are essentially playing roulette with your rate. It could be the same, lower or higher than today’s rates. History would say the same or higher are more likely, but you never know…
good luck!