Many people don’t seem to understand how interest rates are set.
In reality, interest rates track the mortgage-backed securities market. We’ve gotten a lot of comments from clients saying that the 10-year Treasury did this or that, but in actuality, the 10-year Treasury and the mortgage-backed securities market don’t always move in step—sometimes, one will move in one direction while the other goes a different way, leading to occasional discrepancies.
This is why it’s a good idea to talk to a lender, so you can learn what the real rates are at any given time. Yes, they do change every single day so make sure that you know what you’re talking about and that you’re not comparing apples to oranges.
If you have any questions, feel free to reach out to my team. We’d be happy to help.