Mortgage Tips with Fairway Mortgage

The most common answer would be Mortgage Backed Securities or Mortgage Bonds, NOT the 10-year Treasury Note, that so many people believe is the key indicator in determining the direction of rates. While the 10-year Treasury Note sometimes trends in the same direction as Mortgage Bonds, it is not unusual to see them move in completely opposite directions.

Like the 10-year Treasury Note, a lot of people believe when the Feds change rates it impacts mortgage rates, however, when the Fed makes a move, they are changing a rate called the “Fed Funds Rate.” This is a very short-term rate that impacts credit cards, credit lines, auto loans and the like. Mortgage rates most often will actually move in the opposite direction as the Fed change, due to dynamics within the financial markets.

Lastly, there are several outside economic factors that can affect interest rates, such as the rate of inflation and the unemployment rate. In general, negative economic news puts downward pressure on rates, while positive economic news puts upward pressure on rates.

With the current economy continuing to expand and mortgage rates being low for so many years, there is no better time to purchase that new home! Should you have any questions regarding mortgage interest rates, please feel free to contact one of our Mortgage Loan Officers @ 770-653-4175 or by email, rm@fairwaymc.com.