A Mortgages Refinance SnapBuy or lease your next car: Which is right for you? A Mortgages Refinance SnapQuick ratio calculator A Great Article About Mortgages RefinanceWhy Are Mortgage Rates Modified?By Sarah Dinkins When purchasing a home it is important to understand how mortgage rates and generally any loan rates work: Federal Reserve Board Decisions When buying a new house, everyone would like to obtain the best mortgage rates, which, however, vary with the market conditions. So you have to be aware of the market conditions to get the best deal. Mortgage rates, being tied to Wall Street activities and the national economy as a whole, vary from day to day. In case the Federal Reserve Board decides to increase the key interest rate, which is dependent upon the national health of the economy, the lenders will respond by raising their yields to the investors. This will lead to increased mortgage rates. Similarly the mortgage rates will fall if the conditions of the economy are not good, in which case the Federal Reserve Board will take suitable action to revitalize the economy. This manipulation of rates takes place all the time and it is important to keep track of mortgage rates indexes, alerts and online financial news feeds, which are excellent indicators. Lenders have to follow the market trends and consider the secondary market and the sales of existing mortgages by agencies such as Fannie Mae and Freddie Mac. They cannot set their own rates, which are basically determined by the financial investors. Be Informed All The Time Therefore, in order to obtain the best mortgage rates, one must keep monitoring the financial indicators and the news as well as examine all economic parameters relating to mortgage rates. As such it is important to keep track of the financial news of the local and national newspapers. It is apparent that the mortgage lending institutions have to compete with the other markets for the investor��s money. If the deposits in a bank are not enough to meet their mortgage fund requirements, they will have to borrow from the money market, which will not be to their advantage. How can you, then, get the best mortgage rate? One can only do so by staying in touch with the fluctuating financial information, and doing enough research and preparation. One has to keep track of the ever-changing mortgage rates before deciding upon the right time to go in for the mortgage. Interest rates, today, are at their lowest and as such mortgage rates, which were hovering around 10-12% a decade ago, are now at 6.5-7% on a 30-year fixed rate. That means that the best way to secure the lowest mortgage rate possible is to keep an eye on the news, to monitor financial indicators and news closely and to examine all economic cues relating to mortgage rates. Remember, glancing over the financial pages of your local or national newspaper can go a long way in the long run. Therefore, in the truest sense of the word, the mortgage lending institutions are competing with other markets for the investor's money. If a bank doesn't attract enough depositors to fund all the mortgages, they'll have to go where their depositors go - the money market. --- Sarah Dinkins is an Expert Loan Consultant at Badcreditfinancialexperts.com where she helps people to repair their credit and to get approved for home loans, unsecured personal loans, student loans, car loans and other types of loans and financial products. If you need more useful articles find them here with more professional advice on the financial field. Article Source: http://EzineArticles.com/?expert=Sarah_Dinkinshttp://EzineArticles.com/?Why-Are-Mortgage-Rates-Modified?&id=443131 bad credit loan mortgage mortgage refinancing | gmac mortgages | refinance purchase | refinance student loans

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