Wednesday, March 5, 2008

Current mortgage

The factors driving the ebbs and flows of mortgage rates are largely unknown to the general population. You may be inclined to blame or commend your mortgage lender for the low or high rate she offers you; but in actuality, it's not their decision. Today, the true drivers of mortgage rates are the investors in the secondary market. To the layman's eye, mortgage rates seem to move up and down without explanation. But just like the ocean tides that wash up and back by the pull of the moon's gravity, mortgage rates have their own driving force, even if they have a less cosmic source. When the economy is on an upswing, future yields are expected to be better than current yields. Investors, therefore, will hold off buying until higher yields materialize. This drives mortgage interest rates up, because lenders cannot sell their loans at lower yields.

Conversely, when the economy is in a downturn, investors buy up what's available to avoid being stuck with lower yields later. This drives mortgage rates down, as investors are clamoring to buy before yields get too low. So it is very important stay on top of financial trends and planning accordingly, you can time your rate lock to compare and get the best mortgage rate possible. In other words, when the tide is low, put a call into your lender and lock in that rate. You'll enjoy waves of prosperity if you do. For more information regarding mortgages quotes, just check out Free Mortgages Quote.

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