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EMPLOYMENT PATTERNS The number of jobs available and the rate businesses and operations hire new employees impact the average interest rates seen across the nation. The Mortgage Reporter noted strong employment growth will likely also drive up interest rates while a weak job report will keep rates low.

THE FEDERAL RESERVE When money is pulled out of the monetary system, the Fed likely anticipates inflation and interest rates will increase as a result. If cash is added to the monetary system to help stimulate the economy, interest rates will likely decrease.

GLOBAL IMPACT The average interest rate will also fluctuate in tandem with geopolitics and other events that occur globally. Mortgage rates will also decrease if natural disasters, such as hurricanes and earthquakes, occur anywhere across the globe.

THE STOCK MARKET The stock markets will impact both the Bond and real estate markets directly. Interest rates will reflect the condition of the stock market, according to The Truth About Mortgage.

SCORING A LOW INTEREST RATE When the employment situation and economy improve, you can expect rates to spike. While economic factors impact the average interest rate, you can control certain elements and help secure lower credit union rates for a home loan.

CREDIT SCORE CONTROL Low interest rates go to individuals who provide more favorable borrower qualifications. Try improving your credit score as much as you can prior to sending in your home loan application.

DOWN PAYMENTS While there are plenty of low down payment options for mortgages that are available to qualified borrowers, providing a more substantial down payment can help you secure a lower interest rate and ultimately save you more money over the life of the loan.

SIZE OF LOAN AND LOCATION OF HOME The amount you ask for when applying for a home mortgage can impact the interest rate. A larger loan will usually also be accompanied by a higher interest rate. This is because paying back the loan will likely take longer and there is more at stake for the lending organization.

Sources: Brafton Editorial, The Mortgage Reporter and The Truth About Mortgage.