Why hold mortgage rates be low lately? And what are the determining factor for the rates?
We are planning to refinance our house, and we want to get an idea on when to lock a rate and apply for a loan form the edge.
Answers:
Rates have been lower because the bazaar has been slower. Now (between Thanksgiving and Christmas) is other the best time of year to purchase or refinance. Rates are usually lower at this time of year.
Rates are controlled by the 10 yr treasury bond, and more specifically by MBSs, or mortgage-backed securities which are also traded publicly on the secondary market.
A rule of thumb is that when bond prices drop, mortgage rates rise, and when bond prices rise, interest rates be in motion down.
There are many factors that come into play, including inflation. Because the Fed have kept rates steady, inflation worries have subsided, and interest rates stay down as inflation is perceived to slow as well.
Learn just about mortgage, credit, and finance:
http://www.thetruthaboutmortgage.com
Related Questions:
Mortgage nouns. What's is immediately the index rate for an MTA minimun pay?
Are you asking because you have an MTA ? Either way, adjectives you have to do is add the adjustable Margin to the lenders Prime Rate and you have the current MTA, it may change every month, or 3...
Answers:
Rates have been lower because the bazaar has been slower. Now (between Thanksgiving and Christmas) is other the best time of year to purchase or refinance. Rates are usually lower at this time of year.
Rates are controlled by the 10 yr treasury bond, and more specifically by MBSs, or mortgage-backed securities which are also traded publicly on the secondary market.
A rule of thumb is that when bond prices drop, mortgage rates rise, and when bond prices rise, interest rates be in motion down.
There are many factors that come into play, including inflation. Because the Fed have kept rates steady, inflation worries have subsided, and interest rates stay down as inflation is perceived to slow as well.
Learn just about mortgage, credit, and finance:
http://www.thetruthaboutmortgage.com
Related Questions:
Mortgage nouns. What's is immediately the index rate for an MTA minimun pay?
Are you asking because you have an MTA ? Either way, adjectives you have to do is add the adjustable Margin to the lenders Prime Rate and you have the current MTA, it may change every month, or 3...