Home buyers keep up with mortgage rates...

sarahacraddock
Aug 11
3 min read

home buyer mortgage rates — Mortgage Rates are one of many things Buyers and Sellers need to keep track of when making a their next move.

Home buyers and mortgage rates: keeping up-to-date and accurate information on mortgage rates is crucial. As your local realtor it is my job to help you get the information that you need to make an informed decision about you real estate goals. Here are several places you can go to get information:

1. Financial News and Data Websites

These sites compile rate data from a wide range of lenders and provide daily or weekly national averages. They are good for getting a general sense of market trends.

Bankrate: Widely recognized as a leading source for financial information, Bankrate provides current average rates for various loan types, including 30-year fixed, 15-year fixed, and jumbo loans.
Mortgage News Daily: This site offers a highly granular look at daily mortgage rate trends and market analysis, often providing commentary on why rates are moving.
Freddie Mac's Primary Mortgage Market Survey (PMMS): This is a long-standing, weekly survey that is often cited by major news outlets. It provides a reliable benchmark for national average mortgage rates.

2. Individual Lenders

While national averages are useful, the rate you actually get will depend on your specific financial situation. It's essential to check with individual lenders to get a personalized quote.

Banks and Credit Unions: Big banks like Bank of America and Chase, as well as local credit unions, publish their current rates on their websites.
Online Mortgage Lenders: Companies like Rocket Mortgage and U.S. Bank have online tools that allow you to get a custom rate estimate based on your credit score, down payment, and other factors.
Local banks and mortgage brokerages: as a realtor I work with local lenders all the time. I am happy to put my client in touch with local lenders. All you need to do is ask.

3. Understanding What Influences Mortgage Rates

Knowing the factors that affect rates will help you interpret the information you find.

Economic Factors (Macro-level)

Inflation: When inflation is high, mortgage rates tend to rise as lenders seek to protect the value of their returns.
The Federal Reserve: The Fed's actions on its benchmark interest rate indirectly influence mortgage rates. While it doesn't set them directly, its policies on the economy affect the borrowing costs for banks.
The Bond Market: Mortgage rates are closely tied to the yields on U.S. Treasury bonds, especially the 10-year Treasury note. When bond yields rise, mortgage rates typically follow.
Housing Market Demand: In a competitive market with high demand, lenders may increase rates. When demand cools, rates may drop to attract more borrowers.

Personal Factors (Micro-level)

Your Credit Score: A higher credit score indicates you're a lower-risk borrower, which can help you qualify for a lower interest rate.
Your Down Payment: A larger down payment reduces the loan-to-value ratio (LTV), which is seen as less risky by lenders and can result in a lower rate.
Your Debt-to-Income (DTI) Ratio: A lower DTI ratio shows that you can comfortably manage your monthly debt payments, which is favorable to lenders.
Loan Type and Term: A 15-year fixed-rate mortgage typically has a lower interest rate than a 30-year fixed-rate mortgage, though the monthly payments will be higher.