Archive for the ‘year’ tag
30 Year Fixed Mortgage Rate
How is 30 years fixed mortgage rates calculated?
My wife and I buy a house. I want to know how the government determines the mortgage rate for the day. Last week I was told that the bond market was higher than expected, but it seems to have settled this week. What are the factors that go into this complex numbers?
The Fed and bond market plays a big role in how the economy works and how interest rates are determined. Many figures and index visit to caluculations and many things affect the price as Economic Indicators, Job stability, bond yields, treasury bills, stock market, etc. just to name a few, it is a complex calculation. Banks then sell their money based on what buyers on Wall Street will buy mortgage bonds. I do not think there is any a place that can tell you all this but you could try and look on the internet and the information that you see will only be good for that time when it is a still flucuation charge. The bottom line is the rates are what they are on the day they are issued, they are in a constant state of flux, with some times being more volatile than others. Movement in rates helps to control the economy by accelerating it up or slow down. The mortgage industry is a huge state of turmoil right now with all the information in the news etc. One thing you can always count on is that rates might go up and rates go down. Locking a rate is a risk that rates may go down, variable interest rate is a risk rates may go up. You never know.