Where do mortgage rates come from?

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Mortgage rates fluctuate daily – sometimes even multiple times a day. Have you ever wondered where those rates come from?


The answer lies on Wall Street – specifically the trading of Mortgage Backed Securities (MBS). MBS trading can result in a dramatically higher or lower payment when you are ready to lock in your rate. Unfortunately, the indicators needed to see these real-time MBS trading feeds, are not readily available to the public.  The big question is – are they keeping track of rates in real-time and making you aware of sudden changes in the market? Continue reading