CDM Funding Interest Rates.
CDM Funding works hard to find you the perfect home loan at the best interest rate. Whether that is a new home mortgage or a mortgage refinance. We watch the markets every day and compare different rates and programs. For current mortgage rates and information on how interest rates work, please see below. To get pre-approved for a home loan, contact CDM Funding today.
About home loan interest rates.
Economic trends such as employment and job growth, costs of consumer goods, retail sales growth and contraction, and the confidence that consumers have in the future of the economy, all can have profound effects on mortgage interest rates.
Why do interest rates go up and down?
The Federal Reserve Board (FRB) is tasked with holding the reins on the economy. Its job is to keep economic growth moving along at a sustainable rate. They put the pedal on the gas by lowering the discount rate when the economy needs a boost and they increase the discount rate to slow things down. The FRB’s actions drive the short term interest rate market. While the FRB’s actions don’t have a direct impact on mortgage rates, they do have a huge impact on bond market sentiment, which does move mortgage rates.
A key factor to watch is the relationship between stocks and bonds. When the economy is slow and the stock market "bearish," many investors move money out of stocks and into bonds and mortgage backed securities. This can cause mortgage interest rates to go down. Conversely in a bullish market, stocks rally and investors pull their money out of the bond market and into the stock market. This would have the effect of pushing rates up because bonds need to have higher yields to attract those investors back.
So we have the FED stepping on the gas and then on the brake, we have bulls and bears buying and selling stocks and bonds feverishly to maximize their profits, and we have consumers putting off their big ticket purchases when they are not confident or buying cars like they are going out of style when they think everything is going great. All of these things affect interest rates.
The table below indicate the current Mortgage Rates provided by Freddie Mac's Mortgage Market Survey. These rates are provided here as an example. Actual Rates are subject to change due to market fluctuations and borrower's eligibility.
4550 Kearny Villa Road, Suite 215
San Diego, California 92123
858-654-4066
cdmason@fcfunding.com