Mortgage Rates - What Drives Them?

The question I get asked Wmaster most Wmaster regards to Massachusetts Mortgage Rates, is what drives them. My clients are amazed that it is not the fed. When the Fed makes a move, they can change a rate called the "Fed Funds Rate" or "Discount Rate". These are both very short- term rates that impact credit cards, Home Equity credit lines, Wmaster loans and the like. On the day the Fed move, Mortgage rates most often will actually move in the opposite direction as the Fed changes. This is due to the dynamics within the financial markets in Wmaster to inflation.

Massachusetts Mortgage rated are actually driven by Bonds, when the Wmaster is buying bonds they are helping drive the 30 year Wmaster lower. It's a double edge sword for many people; they want the stock market to due well, but they want interest rates to drop. However, most of the time when Wmaster Dow is going up so are interest rates. And when it is going down interest rates improve.

So the next time you are looking for mortgage in Massachusetts make sure Wmaster mortgage person actually knows what drives rates, and how it all works. If they cannot explain how Mortgage Bonds and interest rates are moving in real time and warn you in advance of a costly intra-day price change, you are talking with someone who is still reading yesterday's newspaper, and probably not a professional with whom to entrust your home mortgage financing. Would you work with a stockbroker who is only able to grab yesterday's paper to tell you how a stock traded yesterday, but had no idea what the movement looks like at the present time and what market conditions could cause changes in the near future?

When you work with me, you also take advantage of the dynamic resources Global Home Mortgage has to offer. Wmaster providing multiply lending options and guiding you through the entire mortgage process, I will ensure your complete satisfaction. Our detailed analysis of Wmaster loan options and your unique situation, will guarantee you the most competitive rate. For information go to http://www.chrishills.net or http://activerain.com/blogs/chrishills