How to Tell Mortgage Rates Are Rising?

What are some of the signs that mortgage rates, now at historic lows, are about to go up?

One way is to monitor two important factors in our economy, they are:

• Declining unemployment:

The unemployment rate is sitting just under 10 percent. If lots of Americans go back to work, an increase in interest rates is likely to follow.

• Rising discount rate:

The rate the Fed charges banks that borrow from it directly stands at 0.5 percent. If it rises or the spread between it and the Federal Funds rate widens, then mortgage rate increases won’t be far behind.

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for a mortgage pre-approval contact: Kenton Davidson at Trident Mortgage