What will happen to mortgage rates with the drop in the market?

Answer 1

hopefully they will go down in so much as all of us are paying way too much . good luck .

Answer 2

Well, US mortgage rates will be heading up, but this won't be a response to a drop in the market.

If the market dropped and all else remained equal, rates would tend to drop to stimulate the economy.

But the problem here is US Debt is at record levels and the consumers of that debt are drying up.

US Currency is dropping rapidly, and interest rates are currently fairly low, so US Bonds (debt) arn't as attractive.
Since the US Dollar is buying less, you've also got inflation to contend with as well.

In order to counter this the Fed tends to raise interest rates, and if the bannk rate comes up, the Prime Rate goes us and mortgage rates go up.

The market is essentially suffering because this is going to happen, Not vice versa.

So the market is already anticipating Higher mortgage rates and higher default rates. It's acting in anticpation of that occuring.

Answer 3

Buyers are finding it more difficult to finance purchases because of higher mortgage rates and stricter lending standards, Freddie Mac said. The average U.S. rate for a 30-year fixed rate home loan probably will be 6.7 percent this quarter, according to the forecast. That's the highest level so far this year, and it's half a percentage point above the 6.2 percent average in the first three months of the year.