current 40 year mortgage rates

Today's economy is very dependent on the mortgage. Right now the interest rates are very low. This is obviously good. Today, a 30-year mortgage can be used for about 6%, maybe less. At 6%, a $ 200,000 mortgage for 30 years for a monthly payment of $ 1,199.10.

What would happen if mortgage rates suddenly went up to 10%? Well, this would require a monthly mortgage payment of $ 1,755.14. It does not take much imagination to see that this is a negative impact on the overall economy. Someone with a $ 200,000 mortgage to buy a house, it would need to be able to pay $ 550 per month to qualify for the same loans.

For the economy, which is money wasted. If a person is required to deal with $ 550 per month to buy the house because the price was that much higher, it would be negated by the fact the seller would have more money through the sale of the house.

If the seller is an entrepreneur, this extra money would be at the end to create more jobs. In any case, the additional funds would be part of our economy, even if only in a savings account. However, pay a higher price because the higher interest rates means nobody wins. This in itself would lead to an economic slowdown.

However, the interest rates are good and have been for some time. So you can ask how these rates relative to other prices in the course of history?

Fannie Mae and interest rate stability

In 1938, Fannie Mae was. This put mortgage rates in a given market. Before that time, mortgage rates varied wildly from lender to lender, and between different regions of the country. With Fannie Mae, loans could be sold between different institutions. More people in a market tend to stabilize the price of the underlying commodity.

Back in 1938, there was not much money around. That's why mortgage rates were very low, as low as 3%. In der'40s mortgage rates remained low in part because during wartime most of the regulated business and buying a house was very difficult. Well, there was not much of the demand for mortgage money.

Early Mortgage

In the'50s and until the mid-60s mortgage rates hovered around 5% to 5.5%. This is very close to where mortgage rates are now. However, from 1971, mortgage rates to increase. In fact, from the late'70s, they were out of reach. People who do not receive a credit rating were asked to pay as much as 23% for a mortgage. This of course, was devastating for the economy as a whole, such a misery index was created to determine how bad consumer sentiment was.

Controlling the price of oil is not a new idea

Part of the reason interest rates skyrocketing during the'70s, was the fact that price controls were tied to oil prices. This has had a very negative impact on the overall economy. There was no gas for consumers and disruption of the normal American way of life.

From the early'80s, Reagan-omics started the interest. This trend, in about 1983, is still not finished. The interest rates of the'90s ranged between 7% and 9%. Since around 2001, they were between 5% and 7%. All in all, in the last 20 years we have enjoyed moderate interest.

Now that we have a degree in one of the 50-week low for mortgage interest, then we can ask ourselves whether this downward trend is ending and if mortgage rates head back up. When I think of the possibilities, I must say I am petrified!

Is someone for a change?

In this presidential election year, I hear many people say they are looking for a change. For me, this means that the interest rates low is not what these people are looking for. Perhaps they would like the interest on 15-20%. In their quest for change would mean they would have on the war against terrorism. This is a war we will win, but change would mean they are looking to lose.

Although the economy is no longer screaming like for most of the last 23 years, the economy is not in a recession. In fact, it is not really close. But change would mean a recession. A profound change would mean a depression.

In our economy is the current unemployment rate of 5.2%. Not long ago, full employment was an unemployment rate of 6%. In the last two years the unemployment rate reached a historic low of 4.5%. But people are looking for change. Perhaps the German-French style 13% unemployment is what they want!

In the last 20 years, we have numerous trade agreements with other countries. This has led to lower prices for consumers and lower prices for small businesses. This is good for our economy because it has the small businesses to expand and create. He also has people save and invest.

If you want to change, away with our trade agreements with other countries. They have bought into the idea that free trade exports jobs. But without the free trade of the common PC costs about $ 15,000. This would be a change!

In 2003, our taxes have been lowered. This is very healthy for our economy. One of the changes are on the lookout for something to make the tax return.

Worst of all, another one of the following changes would be those who control the oil price again. This would do it! It would in fact mean change. Are you ready for 23% mortgage rates?

Ed Lathrop is a successful real estate investor and a Series 3 commodities futures broker. He has extensive knowledge of the mortgage loan as well as the commodities futures market and the economy in general. He has EzCalculator, mortgage calculator with a "pay-off credit card debt" calculator, a free "loan" calculator and the famous "How to 100,000 U.S. dollars on your mortgage" "computer. Visit this site free at Free Financial Calculator! also get a free expression of repayment plan, or as many as you want: free repayment plan. These pages are not affiliated with any lender, so you will not be harassed for your visit.