Why do rates change?

What’s Happening with Rates Today?   

The biggest challenge for the consumer when entering the mortgage water is determining when to choose, or lock in, your interest rates.  The biggest challenge in this is trying to determine when rates will move, and how.   Will they be rising or falling today, next week or in a month.   

There are several pitfalls to trying to do this yourself.  In fact if done wrong, or the right decisions are based on the wrong information, you could cost yourself thousands of dollars over the life of your mortgage.

Hello my name is Helen Williams, Certified Mortgage Planning Specialist with Titan Funding Group of Eugene, OR. 

Too many mortgage consumers are running to the internet, watching CNBC and asking advice of people that don’t know where to look for the correct answers when watching the movement of mortgage rates.

Here are several things that most people are not aware of or don’t completely understand when it comes to interest rates.

  • Mortgage rates are determined by the prices in the Mortgage Backed Securities Market and NOT the US Treasury Bonds.
  • Mortgage Rates can change everyday.  In fact, much like stocks, they can change several times per day.
  • Mortgage Rates quoted by Bankrate.com and other online sources are already outdated by the time you read them.
  • Every Thursday the “average interest rate in the country is released for the last week.  This information is not only outdated, but the rate is quoted in media reports without regard to the origination or discount points (Otherwise known as fees) needed to purchase that rate.

Some general rules of thumb when watching interest rates.

  • There is a big picture trend and day to day trading.  Rates may be falling generally but higher today than yesterday.
  • If they go up today, you are out of luck getting yesterday’s lower rates.
  • The stock market does impact rates.  If the stock market is improving rates are likely getting worse and vice versa.
  • Rates are impacted by inflation EXPECTATIONS.

One of the strategies that I provide for my clients and professional partners is called a Rate Alert Twitter Feed. 

The twitter feed allows you to have access to the same market watching service and advice that I have.

-          Simply go to twitter.com/helendwilliams  and sign up if you are not already.

-          Then follow http://twitter.com/helendwilliams to get the information at least once if not several times per day in short, easy to digest bursts about the status of interest rates. 

I can provide a complimentary consultation to see learn about your interest rate objectives and how we can develop a strategy to get the interest rate you want.  The discussion requires I obtain a few pieces of information from you, gathering that takes less than 10 minutes. Leave no stone unturned in your efforts to get your interest rate.  To be able to schedule a no obligation, exploratory conversation to determine the right strategy for you, call 541-341-1400 x 3104 and ask for Helen.

And be sure to ask about the complimentary Total Cost Analysis report.  If you decide to take action and secure a mortgage the Total Cost Analysis helps you choose the right mortgage.

What do you have to lose? More importantly, what do you have to gain? 

We have the key to securing the right mortgage at the right price.

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