Mortgage rates have fallen dramatically since the housing market crash of 2008. Historically low mortgage rates are common throughout the country and have made it easier to refinance or to buy a new home. Even so, many buyers and homeowners are unaware of some of the main factors that affect home mortgage rates in the United States.

The overall state of the economy has certainly affected home mortgage rates, as banks are unwilling to offer low rates when prime rates are relatively high. Historically, the rise and fall of home mortgage rates have been tied to 10-year treasury bonds, so analysts often look at bond rates when trying to determine how changes in the economy are affecting mortgages. The best mortgage rates are available when 10-year treasury bond rates are low, as there is a direct relationship between the two indicators. The supply and demand of the housing market also has an impact, especially in certain regions of the United States.

However, there are other factors at play when setting rates for individual loans. Banks also look at the buyer's credit and the value of a property when setting the best mortgage rates for individual mortgages. Some buyers may find it difficult to take advantage of low rates if they have poor credit and they're looking for a short term mortgage, as banks will often deny loans to these individuals. People with poor or non-existent credit pay higher rates for their first homes, although many who have built up equity can still take advantage of current rates by refinancing.

For home buyers and for homeowners, understanding the factors that drive rates can make it easier to decide when to look for a new mortgage. When the economy is improving and rates are low, it's a better time to buy or refinance, but buyers who don't understand these basic factors might have a tough time finding the best mortgage rates for their properties. Most analysts recommend reviewing home mortgage rates on a regular basis and comparing several lenders before choosing one, as this gives homeowners the best overview of the rates and terms available to them.

Currently, home mortgage rates are extremely low for qualified buyers, but many analysts predict rising rates due to continued economic growth. Buyers with good credit who compare rates will stand the best chances of finding affordable mortgages in the coming year.