Justin Perry's Mortgage Blog

All throughout New England mortgage rates continue to climb.  Today we are about half a point (.5) higher across the board than we were just one week ago.  This may seem contradictory to all the news as of late, with the Fed cutting interest rates and real estate being stagnant.  But there are more important factors that drive the supply and demand for mortgages.

I have mentioned this to my readers many times but bad economic news is generally good for mortgage rates and on the flip side, news that is better than expected can drive mortgage rates up. The data from recent economic reports has come in better than expected.  One of the biggest pieces of information was related to jobs.  The ADP report showed that the ecomony is actually adding jobs whereas many forecasted a declining jobs report.  Remember, a stronger than expected economy builds faith in the stock market and other growth dependent investments.  So as traders move their money out of the securities that back mortgages (MBS - mortgage backed securities), those who hold them must lower their price in order to sell.  A lower price on these MBS creates higher mortgage rates. 

If you are considering refinancing your current loan I would recommend locking your interest rate today.