Mortgage Markets Ended on a High Note in April but May Could Be a Different Story

Economic Hardships Continue to Keep Rates Low

Mortgage markets improved last week on what most would consider tame inflation data, a pretty gentle statement from the Federal Reserve, and ongoing credit problems in Greece.

The factors combined to drop conforming mortgage rates in Ankeny to their lowest levels in over 6 weeks.

It’s an unexpected development when you consider that mortgage rates were supposed to rise post March 31, 2010. That was the day the Fed’s support for our mortgage markets ended.

Since then, however, a month-long string of devastating economic and weather events within the Eurozone sparked a global flight-to-quality that benefited “safe” assets such as mortgage bonds.

May 2010 may not be so kind. So look out!

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!