Welcome back everyone, for another visit with The Mortgage Doctor. Today let's talk about a big topic in the news: interest rates. They are rising, and today we're going to let you know what you can expect from them in the near future.
We have seen an increase in rates over the last 30-60 days that is likely to continue. The Federal Reserve has said they are going to increase the prime rate, which can have an effect on interest rates.
However, this effect is purely emotional. Mortgage rates are actually driven by mortgage bonds, which are based on complicated factors in the stock and equity markets. It's too complicated to get into now, but just remember that the Federal Reserve isn't responsible for a rise in interest rates, and they won't go up immediately.
If you have any questions for me about interest rates and where they are going, give me a call or send me an email. Set an appointment with The Mortgage Doctor today!
What are mortgage rates based on? So many factors go into determining mortgage rates. It's one thing to come up with the rates we see listed at banks and in the paper but then it's a whole other equation to come up with a rate that is offered to you when you apply for your mortgage. That rate depends on several personal factors. It's not just federal agencies that are responsible for the increase or decrease of mortgage rates, it can depend on everyday people like us.mortgage rates
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