VA
30-Year Fixed
Romeo Echo Est.
0.000%
Updated every business day
Today's Rates
Conventional
30-Year Fixed
Romeo Echo Est.
0.000%
FHA
30-Year Fixed
Romeo Echo Est.
0.000%
Non-QM
Bank Statement · DSCR
Romeo Echo Est. Range
0.00 to 0.00%
Romeo Echo Est. = the national average for that loan, less about 0.25%. It is an estimate, not a quote or a rate lock, and it is not guaranteed. Rates are note rates, not APRs. Non-QM has no public daily index, so it is an indicative range. Full disclaimer.
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Rates 101
What Makes Rates Go Up or Down?
Nobody, not even the Fed, sets mortgage rates directly. They move with a handful of big forces, plus a few things about you and your loan.
1
Inflation
When prices for groceries, gas and rent climb, the dollars a lender gets paid back later are worth less. So lenders ask for more interest to make up for it.
▲ Inflation up = rates up▼ Inflation cools = rates ease
2
The Federal Reserve
The Fed sets a short-term rate banks use with each other. It does not set mortgage rates, but what the Fed says about inflation and future cuts or hikes moves the bond market, and that moves mortgages.
▲ Signals hikes▼ Signals cuts
3
Jobs & the Economy
A hot economy with lots of hiring tends to push rates up. Signs of a slowdown send investors to safe bonds, which pushes rates down. Big reports like jobs and inflation can move rates the same day.
▲ Strong reports▼ Weak reports
4
The 10-Year Treasury
The single best number to watch. Mortgage rates follow the 10-year Treasury yield like a shadow, usually about 1.5 to 3 points above it. More on this below.
▲ 10-year up▼ 10-year down
5
Investor Demand
Your loan gets bundled with others into mortgage bonds and sold to investors. When lots of investors want them, lenders can charge less. When demand dries up or markets get jumpy, the gap widens.
▲ Shaky markets▼ Strong demand
★
Your Own Loan
The part you control: credit score, down payment, loan type, property type, points, and how long you lock. Two people on the same day can get different rates. This is where shopping lenders, and a broker like Romeo Echo, makes a real difference.
The number to watch
The 10-Year Treasury
Explain it like I'm 5
The Government's IOU
Sometimes the United States needs to borrow money. So it writes an IOU that says: "Lend me $100 today, and I'll pay you back in 10 years, plus a little extra every year." That IOU is called a 10-year Treasury bond.
The "little extra" is called the yield. It's like the price of borrowing money for a long time.
- Lending to the government is the safest loan there is.
- Lending to someone for a house is a little riskier, so lenders want a bit more than the government pays.
- So when the 10-year yield goes up, home loan rates go up. When it goes down, home loan rates go down.
Think of the 10-year as the dog, and mortgage rates as the leash walking right behind it. Where the dog goes, the leash follows.
10-Year Treasury
0.00%
Conventional 30-Yr
0.00%
The Gap
0.00
points above the 10-year
Conventional 30-Year (national avg.)
10-Year Treasury
See how the two lines move together? That gap between them is the extra lenders charge over the government for the risk and work of a home loan.