How Often Do Mortgage Rates Change?

By Stacy Williams

Secrets to get the best mortgage rate in todays fast paced economy.

Mortgage rate changes are subject to many factors that are related. Current market influences such as bonds and securities in similar markets can affect these rates. The frequency of change is rather often, and can change in a single day. It is important that you understand why these change occur, and if you are looking to finance a first mortgage or refinance a second how this will effect you.

Why Do Mortgage Rates Change

The answer is simple, every day investors are constantly buying and selling investments. In order for a mortgage broker to attract business, they must make their rates of return as appealing as possible. Mortgages that are sold as bonds are sold as debt to investors so they can make a return through the interest rates you pay. After the collapse of the housing markets rates dropped dramatically, but recent unsteady recovery has meant constant change in these rates. So exactly how often do mortgage rates change? The answer from a mathematically point of view is multiple time per day.

How Long for Significant Change in Mortgage Rates?

The answer to this question is a little more difficult. Macro-changes in mortgage rates can happen over a the time span of one trading day, or up to weeks and months. A good example is a couple months ago in 2009 mortgage rates for conforming loans changed by 1% in a single day, but a couple weeks after took almost an entire week to change that amount.

How Can You Find the Best Rate?

This will take vigilance and a keen eye on markets. A change of even a fraction of a percentage could mean a lot of money on a mortgage. Wait till you what seems to be a low rate for market trends and lock it in as soon as possible with your lender.

How Often Do Mortgage Rates Change?

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