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Rainmaker
4,851,560
Richard Weeks
Dallas, TX
REALTOR®, Broker

Correct mortgage rates really come from MBS ( mortgage backed securities) which trade similarly to the 10 year bond in general, but are actually separate. Fed funds are an indirect influencer and reflection of the whole economy.

Dec 20, 2018 06:53 AM
Rainmaker
2,775,621
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

In the Wizard of OZ...it was some guy behind a curtain. Has that changed?

Dec 20, 2018 06:47 AM
Ambassador
5,202,100
Debe Maxwell, CRS
Savvy + Company (704) 491-3310 - Charlotte, NC
The RIGHT CHARLOTTE REALTOR!

In the resale market (new mortgages), we may not even see an increase unless we see a surge in general economic inflation, which is not happening right now.

Dec 20, 2018 05:35 AM
Rainmaker
1,046,444
Candice A. Donofrio
Next Wave RE Investments LLC Bullhead City AZ Commercial RE Broker - Fort Mohave, AZ
928-201-4BHC (4242) call/text

Investors do.

Dec 20, 2018 05:33 AM
Rainmaker
1,237,270
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

That rate like is tied to short term.  Heloc is tied to it. It has been 5% or over from 2.5% a few years ago.

30 year fixed is now at 4.65%. Mortgage rate is money supply correlate to 10 year(long term) better.  When short term rate is higher than long term watch out.  That is the flat yield curve......

No matter how one looks at it, the mortgage interest rate will bump up soon. 

 

Dec 20, 2018 06:59 AM
Rainmaker
4,800,082
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

It will eventually result in higher rates.

Dec 20, 2018 06:32 AM
Rainmaker
2,373,176
Bob "RealMan" Timm
Ward County Notary Services - Minot, ND
Owner of Ward Co Notary Services retired RE Broker

I know Fred Griffin will have the exact answer to your question BUT you can bet that in the end it WILL affect the mortgage rate.

Dec 20, 2018 05:51 AM
Rainmaker
5,096,266
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Demand.

Dec 20, 2018 05:50 AM
Rainmaker
4,434,127
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

It eventually affects mortgage rates.

Dec 20, 2018 05:38 AM
Rainmaker
5,772,353
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Annette,

I think that both Candice A. Donofrio and Corinne Guest gave you the answer. A

Dec 20, 2018 07:20 AM
Rainmaker
1,529,784
Thomas J. Nelson, REALTOR ® e-Pro CRS RCS-D Vets
Big Block Realty 858.232.8722 - La Jolla, CA
CEO of Vision Drive Realty - Coastal San Diego

I know. And I know because Jason E. Gordon taught me.

Dec 20, 2018 06:58 AM
Rainmaker
1,619,091
Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • GRI • HAFA • PSC Calabasas CA

If someone wants to read a very informative article on it: 

https://www.bankrate.com/finance/mortgages/how-lenders-set-rates.aspx

Dec 21, 2018 12:04 AM
Rainmaker
7,788,333
Roy Kelley
Retired - Gaithersburg, MD

The market. 

Dec 20, 2018 07:51 AM
Ambassador
2,679,159
Fred Griffin Florida Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

   It's a combination of factors.  The Fed plays a part.

  

 

Dec 20, 2018 07:31 AM
Rainmaker
1,712,551
Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

It does influence it.

Dec 20, 2018 06:45 AM
Rainer
8,546
Keven Hoopiiaina
DKG Properties - Salt Lake City, UT
Property Manager/Owner/Agent in Training

I was wondering how that might impact mortgage rates and found a good laymen explanation here... 

https://www.dallasmortgageplanners.com/what-impacts-mortgage-interest-rates/ 

Dec 20, 2018 06:38 AM
Rainmaker
2,070,825
Evelina Tsigelnitskaya
SIB Realty - Sunny Isles Beach, FL

I don't know.

Dec 21, 2018 11:59 AM
Rainmaker
1,839,906
Lyn Sims
Schaumburg, IL
Real Estate Broker Retired

Somebody doesn't just make it up? I've been wrong this whole time?

Dec 20, 2018 12:26 PM
Rainmaker
1,598,452
Valeria Mola
SIB Realty - Miami, Sunny Isles Beach - Sunny Isles Beach, FL
305-607-0709 SIB Realty Condos for Sale and Rent

I will read answers. 

Happy Holidays!

Dec 20, 2018 12:03 PM
Ambassador
6,353,366
Bob Crane
Woodland Management Service / Woodland Real Estate, KW Diversified - Stevens Point, WI
Forestland Experts! 715-204-9671

The Fed is not actually run by the Feds, and as Richard Weeks points out they just respond to others.

Dec 20, 2018 11:17 AM
Rainmaker
1,294,491
John Juarez
The Medford Real Estate Team - Fremont, CA
ePRO, SRES, GRI, PMN

Mortgage rates are based on long term Treasury securities rates. The Fed rate is a short term rate and other rates are usually scaled up to reflect added risk over time.

Dec 20, 2018 11:06 AM
Rainmaker
5,191,627
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Investor yield demand in the 10 year bond market is a key influencer!

Dec 20, 2018 10:30 AM
Rainmaker
1,189,122
Doug Dawes
Keller Williams Evolution - 447 Boston Street, Suite #5, Topsfield, MA - Topsfield, MA
Your Personal Realtor®

It's all a manipulation in my eyes. 

Dec 20, 2018 10:12 AM
Rainmaker
5,848,862
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

IF the interest rate moves, it usually is before the Fed rate hike.

Dec 26, 2018 07:15 AM
Rainmaker
4,899,309
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Richard Weeks nailed it.

 

Dec 24, 2018 10:24 AM
Rainmaker
3,986,196
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

The housingmarket has some to do with the rates as deman can set prices also

Dec 24, 2018 03:09 AM
Rainmaker
1,153,744
Kevin J. May
Florida Supreme Realty - Hobe Sound, FL
Serving the Treasure & Paradise Coasts of Florida

I have nothing to add here but enjoyed the read much Annette.

Dec 20, 2018 09:57 PM
Rainmaker
1,183,561
Peter Mohylsky, Beach Expert
PMI. Destin - Miramar Beach, FL
Call me at 850-517-7098

Boy, I am going to los e sleep over this one.

Dec 20, 2018 05:48 PM
Rainmaker
519,324
Dan Tabit
Keller Williams Bellevue - Sammamish, WA

Supply & demand. 

Dec 20, 2018 01:56 PM
Ambassador
3,339,059
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate Services

Looks like Richard Weeks nailed this one with a lot of Ho Ho Ho and Merry Merry Red. 

Dec 20, 2018 10:59 AM
Rainmaker
1,498,158
Ryan Huggins - Thousand Oaks, CA
https://HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

I can't top Richard's answer!

Dec 20, 2018 10:33 AM