Mortgage rates can be influenced by a variety of factors, and they can fluctuate over time due to changes in these factors. In fact, many banks are currently over 7% for 30 year fixed (though RateSaver Mortgage is currently 6.75% note rate for 30 year fixed, APR 7.044% www.GaryTheMortgageExpert.com) Why are mortgage rates high?:

1. Economic Conditions: Mortgage rates are strongly tied to the overall health of the economy. When the economy is doing well, and there is strong demand for borrowing, interest rates tend to rise. Conversely, during economic downturns, central banks may lower interest rates to stimulate borrowing and spending.
2. Central Bank Policies: Central banks, such as the Federal Reserve in the United States, play a crucial role in setting short-term interest rates. When central banks raise their policy rates, it can lead to higher borrowing costs throughout the economy, including mortgage rates.
3. Inflation Expectations: Inflation erodes the purchasing power of money over time. When investors expect higher future inflation, they often demand higher interest rates to compensate for the loss of purchasing power. Mortgage rates can rise if inflation expectations increase.
4. Credit Risk: Mortgage rates also reflect the risk associated with lending. If lenders perceive higher risks in the housing market, such as rising default rates or falling property values, they may charge higher interest rates to compensate for these risks.
5. Government Policy: Government policies and regulations can influence mortgage rates. For example, government-sponsored entities like Fannie Mae and Freddie Mac can impact rates by buying or guaranteeing mortgages. Changes in their policies or financial conditions can affect mortgage rates.
6. Housing Market Conditions: Local housing market conditions can also affect mortgage rates. In areas with high demand and limited housing supply, lenders may charge higher rates because of increased competition among homebuyers.
7. Lender Costs: The cost of funds for lenders can affect mortgage rates. If lenders are paying more to borrow money themselves, they may pass some of those costs on to borrowers in the form of higher interest rates.
8. Mortgage Product and Term: The type of mortgage you choose and its term can also impact the interest rate.

So why are mortgage rates high? It’s important to note that mortgage rates can vary from one lender to another, and they are influenced by a combination of these factors. Borrowers with strong credit histories and financial profiles may be able to secure lower mortgage rates, while those with weaker credit may face higher rates due to increased credit risk. Additionally, mortgage rates are subject to change over time, so keeping an eye on economic conditions and interest rate trends is important when considering a mortgage.

For some of the lowest mortgage rates in the South Carolina market today, call Gary Schoenholz at RateSaver Mortgage, 864-979-1111, or check rates daily at www.GaryTheMortgageExpert.com.