Mortgage Rates Resumed Their Upward Climb Last Week

Mortgage Markets are Global

Mortgage markets worsened last week on a turn-around in sentiment across the Eurozone. Fancy, eh?

Last week marked the first week since the end of 2010 that mortgage rates have risen, breaking a 2-and-a-half-week rally for improvement.

Conforming and FHA mortgages in Iowa increased in rate by roughly 1/8 percent. Naturally, it depends on the scenario on how much they rose.

Last week was data-sparse so mortgage markets took their cues from Europe — specifically Portugal and Spain. There have been lingering concerns that the two countries might default on their respective national debts. The development has a similar feel to what happened in Greece in April of last year, and that may be why markets are reacting in much the same manner.

At the beginning the year, the fear of default in Portugal and Spain was elevated. It drove money managers away from risky assets and toward safer ones, including U.S. mortgage bonds. Last week, however, those fears eased. Money reversed flow and, as a result, mortgage rates rose.

Truly, this is a global market. If you’re currently shopping for a mortgage, make sure to watch not only what’s happening in the US, but what’s happening Internationally as well. If you’re looking for a rate quote, I’d love to help you out. All of my contact information is on the right hand side of the page.

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!