Contrary to what most people think, mortgage rates are not determined by the Federal Reserve — at least not directly. In fact, they fluctuate daily based on the trading pattern of Mortgage Backed Securities.
These rates are not arbitrarily determined by the lender. Rather, they are influenced daily by a variety of factors, including the following:
- Balanced interests between homebuyers, who want lower rates, and investors, who want higher rates.
- Inflation, because it means that the money people borrow will be worth less when they pay it back, causing investors to want higher interest rates.
- Competition among investments — investors compare mortgage investments to treasuries.
- Adjustments of certain interest rates by the Federal Reserve through selling and purchasing securities.
An additional factor affecting rates is the current state of the economy, as well as the demand for stocks vs. bonds. If the economy is slowing and faltering, investors typically buy bonds, causing rates to go down. As the economy starts to recover and business profits and employment numbers start to increase, investors sell bonds to buy stocks, which leads to rate increases.
Still have questions about where mortgage rates come from? Just ask! Our mortgage advisors would be happy to give you more information.
View the Latest Rates for Mortgages & Home Loans
One benefit of working with Integrated Funding is that we have a live feed that allows us to track the Mortgage Backed Securities trading in real time. This means we constantly track whether rates are trending higher or lower, helping us advise our clients if it is a good time to lock in on a rate or float.
The chart below shows current mortgage rates:
To find out more out mortgages and home loans in Raleigh, Charlotte, Wilmington, and beyond, contact the mortgage advisors at Integrated Funding. We’ll walk you through your mortgage options, finding the ideal loan solution for you.
Integrated Funding is proud to offer guidance and assistance with mortgages, including understanding mortgage rates, in the North Hills area and throughout Raleigh, Cary, Apex, Wake Forest, and surrounding areas of North Carolina ranging from Wilmington to Charlotte and beyond.