Durango Colorado - Cash Flow Investments and Note Buying - Lani Warren Properties » Financial News http://laniwarrenproperties.com Investing in income producing properties through equity partnerships and the purchase of FDIC notes. Tue, 20 Jul 2010 21:27:53 +0000 http://wordpress.org/?v=2.9.1 en hourly 1 A Simple Indicator-Will Mortgage Rates Rise Or Fall? http://laniwarrenproperties.com/financial-news/what-makes-mortgage-rates-rise-and-fall/ http://laniwarrenproperties.com/financial-news/what-makes-mortgage-rates-rise-and-fall/#comments Fri, 21 May 2010 23:22:13 +0000 admin http://laniwarrenproperties.com/?p=400 Mortgage rates generally rise when investors have a flight to safety mentality.
A flight to safety happens when investors are nervous about owning risky assets like stocks, but do not want to miss out on earning a return on their funds, so they move their money into risk-free U.S Treasury debt to provide a safe-haven AND an return on investment.

To remind readers, as Treasury yields fall, prices of mortgage-backed securities move higher, which allows lenders to offer lower mortgage rates. As Treasury yields rise, mortgage-backed security prices are led lower, which forces lenders to push mortgage rates higher.

Of course there are many other factors involved in mortgage rates, but this is a quick and simple formula that mortgage shoppers can use to help them decide whether or not to lock in a rate. Are treasury yields moving up or down? Mortgage rates will likely move in the same direction.

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