Hi {first_name},

Whether you have been pre-approved for a mortgage or you are getting ready to do so, It can be confusing and time consuming trying to determine what the current mortgage interest rates are. You might wonder, how are rates determined? How do I get a great rate?

Although it may seem confusing and even mysterious, it’s actually very simple. Most conventional loan rates are priced off of Fannie Mae and Freddie Mac’s Mortgage Backed Securities that essentially behave like bonds. As a result, the 10 Year US Treasury Yield moves almost in lock-step with mortgage rates. That is as nerdy as we are going to get! But, I am including some data so you understand how rates can fluctuate daily and it is shown below.

Suffice to say that all lenders are subject to rates that are determined by these financial instruments. So, let’s take a step back and say, most lenders are on an even playing field when it comes to rates. There can be some slight difference from lender to lender based on certain factors, but there should not be extreme differences in rates from top lenders.

Since rates change or can change daily, it pays to have a pulse on the market for interest rates. In order to keep a pulse on rates, we subscribe to the best groups of Wall Street professionals. They monitor rates daily and warn us of impending rises in rates.

One tip is to let me know when you find a property you really like during your home search and I can prepare an estimate so that you know what the payment will be and how much money you would need for that particular property. This way you will have detailed and accurate information about the payment and down payment needed for that specific property on that particular day. The bottom line is that I follow rates daily and I can warn you of impending rate increases and I can also let you know if the rate dips…

(This chart shows how rapidly rates can change. From January 1, 2018 to June 6, 2018, the average mortgage interest rate increased approximately .5% or half a percent from 3.95% to 4.43%, over approximately a 5 month period. This is according to the Freddie Mac Mortgage Market Survey which takes an average of rates that were issued to consumers. Keep in mind, that this is for a Conventional 30 year fixed mortgage with 20% down payment.)