Things Are As They Seem

Last week was quite predictible.  Seriously, it was.

Look at the calendar below and you’ll see most economic reports came in as expected.  The predictions are often ugly, and the results come in matching.

Now remember, mortgage rates react to this news, but they set the ‘expectations’ where the experts do.  So, if the expectations are rough news, the markets already have it ‘baked in’ to the cake.

As rule of thumb, the uglier the news, the better for mortgage rates.  Last week overall was a good week for mortgage rates, but there were some great opportunities to lock in some extremely low rates.

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 would love to help!

Tagged as: ARM, Des Moines, Economic News, factors, Fed, Inflation, Iowa, Mortgage, Rates