My Institution Forum Discussion B What is the current rate

My Institution ? Forum: Discussion B What is the current rate of interest for a 30-year mortgage? Is this a reasonable rate of return for the financial institutions? Are you willing and able to to borrow at this rate (no need to disclose personal financial information, just is this attractive to you and why)? Are banks willing and able to make loans? Why or why not? Grading Information

Solution

30years mortgage rate is 4.58%. it changes daily as per many economical and political factors.

and the rate varies from one instituition to other based upon credit rating. i.e. if any of the company have less credit rating having less credit rating for that mortgage interest rate will be more.

well. whether it suits the company or not depends on its current situation and their perception over economical and political factors.

if they are of the perception that inflation rates get increased due to the strong economic growth then interest rates gets increased to reduce the purchasing power. in that case sticking to 30year mortgage loan is beneficial.

if their perception of recession in future and less growth in the economy then it is better to opt for floating rate rather than fixed rate.