First Time Rates Have Risen This Month
As a surprise to some, mortgage markets worsened last week with little economic news to push markets in either direction. Momentum trading and re balancing of portfolios drove mortgage rates higher.
Both FHA and conventional mortgage rates in Iowa rose last week, marking the first time that’s happened this month. Ouch.
Mortgage rates have been on impressive run lately and mortgages are priced far better than what most experts talking heads predicted. Weaker-than-expected economic data is one reason why. Lack of economic data may be another.
Specifically, What Did Those Reports Say?
Each week, I put up an economic calendar of news coming out that following week. Here’s the what actually happened with those reports last week:
What Impacts Mortgage Rates?
If you’re looking to purchase or refinance a home, it’s important to know what moves mortgage rates. There are normally two major things that impact the direction:
- Economic News. (Like the calendar above).
- International News. (major events, pending legislation, war related news, etc).
- Stock Market. (Money flows from equities (stocks) to bonds when it seeks shelter).
What Are Rates Based On?
It’s been mentioned before, but as a common reminder – mortgage rates are only based on one thing, Mortgage Backed Securities (MBS). The only way you have access to these is through live bond quotes.
Looking For Mortgage Rates?
If you’re looking for specifically what mortgage rates are doing, I’d be happy to help with a custom rate quote. Each scenario is different (there are 27 different factors a mortgage rate is determined by). If you or someone you currently know are looking for a mortgage, I’m here to help!
Information without obligation. That’s my policy. If you like what you hear, my team and I would love to help you out with your mortgage! Our contact information is on the top right hand side of this page!
