Who sets the mortgage rates?
Taking out a mortgage is a long and arduous process that involves a lot of different steps, with a lot of different people involved. There is you (the buyer), the seller, real estate agents, brokers, lenders and banks, just to name a few. With all of these factors involved, taking out a mortgage on a new home can be a very confusing procedure. As you are going through the steps to take out a mortgage, you may be wondering how the different rates for a mortgage are set and who exactly is in charge of them. An article on Bankrate.com from May 1, 2006 entitled, “How lenders set rates,” tells potential home buyers about the influential figures in the mortgage rate world. “How do lenders set your mortgage rate? Well, actually they don’t. While mortgage lenders control who gets approved for a loan and on what terms, actual mortgage interest rates themselves are largely determined on the secondary market, where mortgages are bought and sold.” Mortgages are bought and sold through a market. Le
