How are Mortgage Rates Determined?

Mortgage rates are determined by risk. The more risk factors a loan has, the higher the rate could be. Mortgage rates are determined by global savings as well as credit spreads and inflationary pressures. Mortgage rates are determined every day from 8:30 am to 5:00 pm (EST) in the public bond markets. For the first time ever, you are able to watch them LIVE.

Mortgage rates are determined by the market rather than by the Federal government. Lenders take into account their long-term expectations for future inflation when setting their mortgage rates and pricing. Mortgage Rates are determined by the supply of money on the open market. Every day money flows in and out of different investments based upon investors’ perception of where the greatest opportunity lies for them to make money. Mortgage rates are determined by the banks. The banks determine the mortgage rates by adding the yield on 10-year treasury bonds to their spread.

Mortgage rates are determined by global savings as well as credit spreads and inflationary pressures. Mortgage rates are determined by mortgage back securities. Rates typically go up after Fed cuts because for the bond investor there is a greater chance of inflation with a rate cut. Mortgage rates are determined by the price of mortgage bonds.
That's it and that's all .

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Gurmit Singh is a licensed mortgage expert with Dominion Lending Centres Mortgage Villa.

Gurmit Singh, mba
Mortgage Expert
M08009905
Dominion Lending Centres Mortgage Villa (11574)
Email:gurmit@gurmitsingh.ca
Website: http://www.gurmitsingh.ca