Mortgage Rates Explained

Brent Lucas of Guild Mortgage, M Realty’s featured partner, offers some industry insight into what drives Mortgage Rates.

“Should I Lock or Float?”

Locking in a good home loan rate weighs heavily on the minds of most homebuyers, and rightly so. Each fraction of a percent could represent huge savings over the life of a loan. Homebuyers are always eager for mortgage rate predictions, even if they know they’re seeking certainty in an arena of constant change.

So… why is it SO hard to nail down home loan rates?

The reality is that many factors influence home loan rates, and these factors are as significant as they are unpredictable. However, an experienced mortgage loan officer can assist you in identifying consistency and repetition in market shifts by watching what happens with the “Big 6” economic indicators (reflected below) and the daily performance of Mortgage Backed Securities (MBS).

 

If you’d like to know more about current mortgage rate performance, now is the perfect time to reach out to your favorite real estate agent to be connected with a financial professional like Brent.