Mortgage Markets Improved Last Week Due to a Slowing U.S. Economy

New All Time Lows Were Reported

Major stock indicators fell to 2010 lows in response to a really weak jobs report among other data points, forcing investors worldwide into the relative safety of U.S. government-backed bonds. This category does includes mortgage-backed bonds and the extra demand helped to drop rates.

Once again, mortgage rates improved in Iowa and again, Freddie Mac is reporting new all-time lows on three popular, conforming loan products:

The 30-year fixed rate mortgage
The 15-year fixed rate mortgage
The 5-year adjustable rate mortgage

Low rates mean low payments and you can’t know your options until you ask. So don’t be shy! I’m here to help.

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!