
Trends of interest rates are affected by the conditions of the national economy. This is why mortgage rates fluctuate weekly, daily, and even hourly with the release of each new economic indicator. If growth is slow and unemployment is high, rates will be lower as a slumped economy is likely to keep people out of the housing market. On the other side, if the economy is booming, interest rates will generally move higher. Some of the most important rate-influencing indicators to watch for are federal funds rate changes from the Federal Reserve, the growth rate of the gross domestic product (GDP), national unemployment figures, inflation trends,...