Today’s Mortgage Rates
Factors That Impact Mortgage Rates
Mortgage rates can change daily, sometimes multiple times in the same day. Here are the economic and industry factors that might impact rates.
Bond Market
The bond market, specifically the Mortgage-Backed Securities (MBS) market, is a major contributor to mortgage rate movement. Bond market volatility is bad for rates.
Inflation
When it comes to inflation impacting mortgage rates, there is a simple rule to follow: Higher inflation equals higher rates. Lower inflation can lead to lower rates, but not always.
Jobs Report
Every month, usually on the first Friday of the month, there is a jobs report (8 am EST). If it’s stronger than expected, mortgage rates will generally be negatively impacted.
The Fed
The Fed does not directly impact mortgage rates, but they do influence the bond market, which then impacts mortgage rates. The Fed is the most powerful economic voice in the market.
Industry
A lot goes into determining a mortgage rate, and one of those factors is the internal industry dynamics. In times of “stress,” this can push mortgage rates higher until the stress subsides.
Lender
A lender’s operating cost and daily/monthly loan application volume can directly impact mortgage rates. Higher-than-anticipated costs and/or high volume lead to higher rates.
California Mortgage Finder provides relevant mortgage information so clients can make an informed decision about their next mortgage transaction. If you have questions about the information provided and how it might impact your specific transaction, don’t hesitate to contact us.
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