When you shop for rates online, you’ll receive an estimate of what to expect on your mortgage if you applied for a loan today. Unfortunately, many advertisers will tease a low interest rate in a marketing campaign for the purpose of creating interest in a specific loan program that may only fit a unique type of qualified borrower, or may not be available at all. I don’t publish today’s rates online for the following reasons.
First, there are many factors that will affect your rate -These factors include but are not limited to: credit score, type of property, occupancy, loan size, type of transaction. Before I can give you an accurate rate quote, I need to do a detailed analysis of your financial situation.
Also, I know how frustrating it is to be given a rate estimate only to discover later that you can’t actually get that rate. My goal is to give you an accurate quote upfront, and I’ll take the time to do it.
Typically, it’s preferred to do an initial consultation where we can discuss your finances and mortgage needs and then I can give you a rate quote that you can actually use. If you’re refinancing, we can lock that rate in, or if you’re looking for a purchase preapproval, I can provide you with updated rate quotes as you search for that perfect property.
How are market interest rates determined?You’ve done all you can do to improve your credit, increase your down payment and present the best overall picture for yourself. How do you know when the best time is to lock your rate?
Timing the market to lock a mortgage rate is certainly a challenge, even for professionals. While there are many interest rate trend indicators online, the difference between what’s advertised and actually attainable can be influenced at any given moment by many different variables in the market.
Lenders set their rates based on the market activities of Mortgage Bonds, also known as Mortgage Backed Securities (MBS). On volatile days, these rates can change multiple times throughout the day. Some of the major contributors to rate fluctuations are inflation number, job reports, the Federal Reserve, GDP numbers and, of course, the global economy.
We see rates go up when the economy is growing or is expected to grow. Stocks will likely become the more favored investment. When investors buy more stocks, they purchase fewer MBS, which drives the price down.
Rates go down when the economy appears to be slowing or is doing poorly. Investors typically move their money out of the stock market and into the safety of the MBS.
Ultimately, your best bet is working with a loan officer, who is equipped with the technology and professional services to track and stay alerted to the precise moment rates make a move for the better or worse.