Mortgage rates are constantly changing, making it difficult to decide when it is best to lock in a rate and apply for a mortgage. There are many factors that affect the mortgage rates that are available to you, such as your credit score, loan and home value, state and city, and LTV (loan to value), but in general it is important to monitor mortgage rates when thinking about purchasing a home.
What Affects Mortgage Rates: How Mortgage Rates Change
Mortgage rates are influenced by shifts in the national and global economies, largely caused by changes in government policy. Mortgage lenders in the U.S. adjust their rates in response to trends in the economy, such as inflation, recession, and rate hikes. Additionally, mortgage rates are shaped by shifts in the real estate industry as a whole. If both the construction and the sale of homes increase, mortgage rates will also rise. Another factor to consider is the yield on the 10-year U.S Treasury note, which correlates positively with adjusting mortgage rates. If the yield increases, then mortgage rates are likely to follow. Clearly it is important to study and understand these economic conditions, but what is the best way to monitor mortgage rates and keep yourself informed?
How to Monitor Mortgage Rates
If you are looking to purchase a home and are seeking financing, consider signing up for automated alert services to remain up-to-date on the latest mortgage rates. Make checking websites like Bankrate.com, HSH.com, and FreddieMac.com part of your daily morning routine to ensure that you are always accurately informed. And, although these sites are certainly helpful, nothing beats working with a mortgage lender that you can trust. Learn how to choose the right mortgage lender.