If you’re trying to make the plunge and lock in at a low mortgage rate, you’re either going to need to depend on the advice of your mortgage professional, or take the time to “read” the market.

If you are relying on your mortgage professional to lock your rate (which in reality, should be the case), you better make sure they understand how mortgage rates change.  If your mortgage professional is talking about the following when referring to locking your rate, you better think twice about their true understanding of mortgage rate movement.

1. Excessive talk about 10 year treasury figures
2. Relying on a fed rate cut to indicate mortgage rate drops
3. Reference to prime lending rates (unless you’re doing a HELOC)
4. Checking their crystal ball

Mortgage lending rates have EVERYTHING to do with the sale and purchase of mortgage backed securities (MBS).  If your lender understands this, there’s a good chance they are in tune with what really drives interest rate changes.  They are likely following some of the more credible blogs created for mortgage professionals or subscribing to live data feeds of the MBS market.

It is not really the the function of the borrower to learn and understand the way mortgage backed securities work, what stimulates the purchase of MBS in the secondary market, and what the effects of buying and selling are.

If you just want the best interest rate from a lender that knows how to lock in at a low mortgage rate, is committed to the best mortgage offers in writing, find the best mortgage rates now!

The best place for a consumer to read up about MBS is at Mortgage News Daily. They provide a consumer section for mortgage rate indications that can be really helpful.

Tags: mortgage lock, mortgage rate lock, rate lock