Orlando Mortgage Blog

Though many factors can have an impact on daily mortgage rates, a very simple method for keeping an eye on likely rate movement is the benchmark Treasury yield. The 10 year is the primary T-note that mortgage lenders monitor daily. As benchmark Treasury yields fall, prices of mortgage-backed securities move higher, which allows lenders to offer lower mortgage rates depending on the amount of the move. As Treasury yields rise, mortgage-backed security prices are led lower, which forces lenders to push mortgage rates higher depending on the amount of movement.

I tell all my customers to remember one thing: lenders tend to lower rates like a falling feather on a calm day and increase them like ballistic missles. "Float" with caution.