INTEREST RATES: How Are Mortgage Interest Rates Determined?!
DID YOU KNOW that Mortgage Interest Rates change DAILY and in some cases even HOURLY!? These changes most certainly impact both home purchase/refinance transactions, as rates for both types of loans follow similar market trends.
Mortgage rates are influenced by their complex relationship with economic + market factors, which is why you'll ofter hear that locking in a rate on a Monday is less risky than on let's say a Wednesday.. Key drivers to their constant fluctuation include economic conditions/outlook, overall health + future economical forecast, inflation rates (higher inflation typically translates to higher mortgage rates), the FED's policies strongly dictate these rates, as well as 10-year U.S. Treasury Bond Yields (mortgage rates generally follow the direction of these benchmark bond market yields), and of course: World Events. Elections. Wars. Natural Disasters. These things can all influence mortgage rates. Different Mortgage Loan Types also vary as you can see from this screen shot, which all carry different interest rates based on their UNIQUE risk profiles for the various Mortgage Lenders.
There's actually so much to discuss on this topic, so definitely let me know if you'd like to learn more whether that's with a social/blog series, or a scheduled phone/virtual call!
And if you'd like to simply catch up on how Mortgage rates fell below 7% for the first time in 6 weeks, click the link below to read the article. 
Read Article HERE.
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