One of the key factors that go into mortgage rates is the pricing of the property itself, of course, and the state of the market. They can fluctuate depending on certain key economic factors that interchange with each other at a certain speed and algorithm to determine what particular point the rate is in the business cycle.

Property investors and lenders study the changes in the mortgage stock to determine when it is safe or volatile to invest in an individual business or property.

As for the general economy, changes in the GDP (and economic growth rates) can have a dramatic effect, leading to decreases and increases in interest rates. This means that investors and real estate moguls will have to adjust the amount of money they spend for them to stay profitable and in the clear.

For example, as all previous records seem to indicate that an increase in economic growth and GDP increase tends to generate an advanced interest level in the economy, which then, in turn, puts more pressure on the already-advancing mortgage rates. This is not unique to the real estate economy, of course. This also applies to all sorts of different markets, economies, businesses, and stocks around the globe!

You know how the old saying goes, though; what goes up must come down. Therefore, if it goes that an increase in market activity can bring up the prices and value of a particular property or mortgage rate, then a decrease in market activity will bring it down. This is what has happened many times in the past, and especially during the housing crisis of 2008.

Forecasting in the real estate market is a popular way for investors to stay a couple of steps ahead of their competitors. Mortage lenders will often try to study the stock systems and general economy as well as the real estate economy to predict when it will crash or spike. This allows them to take their losses, if there are any, or capitalize on the volatility of the market.

Forecasting these economic conditions also prove that they add insight into how different interest rates are bound to behave, plus they gauge how the economy (of the country, as well) of any one particular market is going to fare in short as well as the long term.

As you know, government policies and currency regulations quite obviously affect the markets; the Federal Reserve is a fundamental component to maintaining the volatility of these markets. The government can control the pricing and the bounciness of these interest rates through keeping the fluctuation of the currency. They can do this by selling, buying or inflating the currency at any given time.

If the economic growth for one particular quarter is too great (which is never a bad thing, in most cases) or too few, it can generate too much inflation. What this necessarily means is that it can harm the purchasing and selling power of the economy.

To prevent the value of currency from dropping too much, the government will often purchase bonds to artificially inject money into the economy. This tactic can prove to be stable, or extremely volatile; that is usually how it works with inflation, which has proven to be an unfortunate side effect of capitalism.

As you can see, there are a lot of different aspects that go into determining how mortgage rates fluctuate, some of which are as simple as people not wanting to buy houses, for some reason. Others, of course, could be that the government lost a crucial money-generating resource and the economy is suffering from inflation.