Shopping for a mortgage rate can be challenging especially because rates change daily, often several times a day. It can be difficult to know when the best time to lock in mortgage rates because there is no special formula that determines where rates are headed. By working with an experienced professional you will be sure to make the right decision when it comes to purchasing or refinancing a home.
Mortgage rates are based on the MBS market or Mortgage Backed Securities and can change upon many factors including the weekly economic reports, Federal Reserve policy changes, as well as global economic news.
Generally mortgage rates will rise with positive economic reports, such as an increase in employment or higher GDP numbers, and will fall if economic data is weak. The most important economic reports are those that reflect the state of the economy.
Another thing to keep in mind is that mortgage rates vary by the type of loan you get whether it is backed by Fannie or Freddie, FHA, VA, Jumbo, etc. Your rate also is dependent on your credit score.
For more information on mortgage interest rates don’t hesitate to contact me. I am here to help achieve your financial goals.