Mortgage Rate Up & Down Market Movement
Educational Series: 2 of 4
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Mortgage rates change daily, and sometimes multiple times per day. In this article, “mortgage rates” will refer to the combination of upfront cost and actual interest rate described here: The 2 Components of Mortgage Rates. For example, if we talk about “higher rates,” it could either mean that the interest rate is higher, or simply that the upfront cost is higher for the same interest rate.
These frequent changes are not arbitrary in any way. Instead they are the result of multiple factors with varying levels of importance and interdependence. Mortgages exist because investors want to earn interest by offering loans. Because of this, mortgage rates end up being directly driven by all the various market forces and operational considerations that dictate what those investors can/should/must charge.
If you are interested in buying a new home or refinancing, please give me a call (or) apply online.
Joe Moore - CalPATH Division Manager