How can that be when the Federal Reserve Bank lowered interest rates?
It is a good time to reflect on what drives mortgage rates. Mortgage Backed Securities are the key to mortgage interest rates. Obviously the rates are affected by many different factors and this last week despite the lowering of interest rates, the stock market rose dramatically and long term bonds (10 year) were not garnering the interest they had. The dollar dropped significantly against other foreign currencies, oil prices rose and suddenly mortgage backed securities are not as attractive an investment so interest rates rose to counter this.
Robyn Robertson
Suburban Mortgage Inc.
Phone 480 355 8106
Cell 480 415 2336
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