Interest rates are affected by a number of different factors. The Federal Reserve is in charge of keeping the economy of the nation financially stable. They do this by controlling the short term interest rates and increasing or decreasing them. This in effect plays a role on the fluctuations of mortgage interest rates.

The rate you qualify for will depend on an entirely different set of factors. These include, your credit, the loan amount, the value of your home, the ability for you to document your income, etc.

The buying and selling of Treasury Bonds will also affect some of the longer term mortgage interest rates. The daily yield performance will indicate whether there will be any rate changes on a day to day basis.

Interest Rates on Adjustable Rate Mortgages are most affected by the performance of the index they are linked to. Common Indices include the MTA and the LIBOR.

 

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