What causes mortgage rates to change, sometimes up, sometimes down?
There is no secret formula to account for mortgage rate behavior. In fact, it’s really quite simple. Oftentimes, like the stock market, mortgage rates are dictated by investor emotion and by mass media force-feeding. Newspaper and television junk food is often served and gobbled up by consumers too lazy to do the research themselves. That means investigating and perusing other sources of information like contacting reputable real estate and mortgage banking professionals, and weighing what they say against your research done on the Internet or local library or bookstore. Educate yourself first. It’s not unusual for mortgage rates or loan percentage points to change more than once per day. For example, a mortgage loan that has no points in the morning may inflate to a quarter point or .25 percent fee on the loan by the afternoon. Think of mortgage loan points as a variable service fee attached to the loan, depending on the current cost of money. The real economic factors that cause mort
