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frankmcdowell2000 · Joined: 07 Sep 2009 Posts: 57 0.00 Dollars($)

What are the factors that will cause mortgage interest rates to drop?

gmakerley · Posted: Thu Oct 01, 2009 6:36 am Post subject:

that would take a week to answer

annyb27 · Joined: 07 Jul 2009 Posts: 144 -1.08 Dollars($)

Most important factor playing role in dropping of mortgage rate is Inflation. This inflation is directly proportional to interest rate. As inflation reaches higher the interest rates will be automatically higher side.

Another factor may be Volatility Index. Volatility index means rate may be volatile then lenders prefer high rate interest. As there is uncertainity observed.

gmakerley · Posted: Thu Oct 01, 2009 10:38 am Post subject:

well, that was concise and oh-so appropriately confusing.

stevecomish · Joined: 16 Sep 2009 Posts: 48 0.08 Dollars($)

i don't think that interest rate is directly proportional to inflation.

a balance between money supply, inflation & interest rate is required to be maintained

hemsleysue · Joined: 13 Sep 2009 Posts: 72 0.02 Dollars($)

there are many factors that go into mortgage rates dropping all of which you can find by scrolling through this great site

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