Mortgage rates recently fell for a seventh consecutive week to the lowest level since December, as monitored by Freddie Mac. Orion’s brokers know that mortgage rates vary, of course, based on loan size, the borrower’s credit, loan-to-value, and other factors, but Freddie Mac's latest Primary Mortgage Market Survey showed that the average rate on the benchmark 30-year fixed mortgage decreased to6.63% from last week's reading of 6.76%. The average rate on a 30-year loan was6.88% a year ago.

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We see our brokers continue to stress to clients that obtaining financing for a home is dependent on product, price, and service. But the decline in rates increases prospective homebuyers’ purchasing power and could provide a strong incentive for owners to make a move. This decline in rates is already providing some existing homeowners with the opportunity to refinance. In fact, the refinance share of market mortgage applications released last week reached nearly 44percent, primarily to pay for remodeling and to pay off high interest rate credit card debt.

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Brokers are explaining to clients why mortgage rates are dropping, as well as interest rates in general. Uncertainty about economic issues, such as the tariffs Trump imposed, and then removed, last week, has helped push rates down. Economic data is continually being released, and investors hear news about factors that affect the economy: the job reports, inflation data, and comments from the Federal Reserve during the week or after its meeting on March 19. Each of these factors could help rates shift up or down.

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As are minder to brokers for your clients, a mortgage interest rate is a fee for borrowing money from your lender, expressed as a percentage. The Federal Reserve and mortgage rates have a very close relationship and are often mentioned in the press, but the Federal Reserve doesn’t set mortgage rates. Contrary to popular belief, mortgage rates are not based on the 10-yearTreasury note. Brokers know they're based on the overall bond market, meaning mortgage bonds or mortgage-backed securities. Mortgage-backed security prices drive the fluctuations in mortgage rates.

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Whether mortgage rates go up or down depends on numerous factors, such as the economy and housing market, nearly every single one impossible to accurately and consistently predict. Orion and our AEs are carefully watching economic indicators and their impact on your client’s rates, while at the same time focusing on Orion’s service and continually improving on our products.

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