More Good News for the Economy Led to Higher Mortgage Rates Again Last Week

by Tyler Osby on January 24, 2011

Wall Street Gains Confidence in the Market, Mortgage Rates Suffer

Mortgage markets worsened last week in a short holiday trading week.

As the U.S. economic data continues to show slow, steady improvement, Wall Street is becoming a seller of mortgage backed bonds. As a result, conforming mortgages rates in Iowa are rising.

Existing home supplies plunged to a  two year low in December, and unemployment claims dropped more than professionals expected, giving hope for the U.S. economy in 2011. This is why conforming and FHA mortgage rates overall, rose last week in Iowa.  As always, timing is everything.  If you don’t have a mortgage professional watching things for you, I’d be happy to personally help you.

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!

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