Mortgage Rates

Interest rates can vary across different loan programs. This is why the rate you’re quoted for an FHA loan might differ from the rate for a Conventional, USDA, or VA loan. The market dynamics predominantly influence mortgage rates.

The market impacts interest rates based on mortgage-backed securities (MBS) performance. These MBS form the pool of funds agencies like Fannie Mae and Freddie Mac use to finance mortgage loans. Fluctuations in the market and MBS result in continuous changes in interest rates. We’ve occasionally observed up to 6 rate adjustments within a single day. We utilize a monitoring system to receive real-time alerts on the MBS market performance. This enables us to time the lock-in of your loan to leverage improvements or expedite the lock-in process if a negative shift is anticipated.

Additionally, lenders can play a role in shaping mortgage rates. When a lender faces a situation of overwhelming business volume that they can’t process efficiently, they may take steps to slow down the influx. One method of doing this is by increasing their interest rates. As we scout rates from various lenders for our customers, we notice disparities in rates offered by banks seeking to manage their business flow. We can distinguish when a bank is eager for more business by noting the significantly lower rates they offer. This underscores the reason we collaborate with multiple investors/banks – to ensure that we have options that reflect competitive rates for our customers at any given time.