Mortgage rates during a recession

It is a consensus among the economists that if we continue with this path the recession is inevitable. Most of them are saying that we will be in a recession by the second quarter of this year. What does this mean to the mortgage rates?

During a recession, mortgage rates may be lower than they are during times of economic growth. This is because the Federal Reserve often lowers interest rates in an effort to stimulate the economy. When the Federal Reserve lowers its benchmark interest rate, it can put downward pressure on mortgage rates.

However, it is important to note that mortgage rates can also be influenced by a variety of other factors, such as the yield on government bonds and the supply and demand for mortgage-backed securities. Additionally, lenders may be more conservative in their lending practices during a recession, which could lead to higher mortgage rates for some borrowers.

In general, it is always a good idea to shop around and compare mortgage rates from multiple lenders in order to find the best deal. It is also important to consider the terms and conditions of a mortgage, as well as any fees or closing costs, in addition to the interest rate.

Contact me today to find out what the current rates are. 714-658-0871

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