Don’t Miss Out, Look into Your Refinance Options

Mortgage markets worsened again last week as belief in a U.S. recovery and worries about inflation took a hold of Wall Street.  Conforming mortgage rates rose in Iowa for the 6th straight week.  SIX WEEKS.

According to Freddie Mac’s weekly Primary Mortgage Market Survey, the average 30-year fixed rate mortgage is 0.66% higher this week as compared to rates on November 11, but loan originators will tell you that figure is understated.  Mostly because it’s old news.

Real mortgage rates — mortgage rates available to everyday homeowners and buyers in Des Moines are up by as much as a full percentage point since November, and loan costs are rising, too.

Goes to show that timing really is everything when it comes to locking in a low mortgage rate!  If you’re still trying to lock in the right rate, feel free to reach out to me.  I love to help my readers with mortgage rate quotes!

The Refi Boom of 2010 is Over

Last week, mortgage markets revolved around the always important Federal Open Market Committee. The FOMC met Tuesday and voted to leave the Fed Funds Rate unchanged within a target range of 0.000-0.250. This was expected. However, markets seemed to be surprised by the Fed’s take on inflation. (Interesting, right?)

In its press release, the Fed said inflation is running too low to benefit the economy. Its policies, including the group’s $600 billion bond market program, may be meant to spark inflation, then. This would lead mortgage rates higher and Wall Street knows it.  It’s not their first time around the block.

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:

1. Economic News.  (Like the calendar above).
2. International News. (major events, pending legislation, war related news, etc).
3. 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!

Tagged as: FOMC, Inflation, Mortgage Rates