San Diego Mortgage Company

12 Feb 2016 06:31

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The MR Website is an online marketplace where you can research and compare prices in a number of different categories, including home purchase loans, home equity loans, and mortgage refinance loans. san diego mortgage company are set by a complex set of economic factors including the state of the housing market, secondary markets, investor demand, federal intervention and other factors. Confusion regarding the fluctuation of mortgage rates is common, especially when we hear about the Fed, “voting to keep mortgage rates low.” MR
The primary influencing factor in mortgage rates is Supply and demand principle which is as old as time that is still relevant today. Supply is reduced every year by demolitions, abandonments, conversions, and disasters like earthquakes or floods. It can also be reduced by government regulations that limit growth in certain geographic areas. To meet supply, new homes are built, adding to the supply and maintaining balance. Demand is strongly affected by populations in any given area; also the ability of potential homeowners to borrow money also affects demand. Demand is suppressed by the inability of many buyers to borrow money.
Mortgage rates are also strongly affected by the secondary market. When the consumer takes a loan with a mortgage broker or bank, the loan is bundled with others and sold on the secondary market. After buying these loans, the secondary market turns them into securities or funds, which are then purchased by large institutional investors.
So what does this have to do with mortgage rates? It’s a comparison game. It is a balancing act in which banks try to keep rates low enough to attract borrowers, but high enough to satisfy investors. The pendulum swings the other way when the secondary market expects the Fed to lower rates. Knowing the complexity of mortgages it’s always better to hire consultants at mortgage, San Diego.

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