Mortgage Rates Explained (and How to Get a Lower Rate)

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Mortgage rates are hovering around the highest they’ve been in almost two decades. And most homebuyers are asking the question, “Why are mortgage rates SO high right now?” If you want the answer, you’ll need to understand how the Fed, bonds, and banks all interact to decide today’s mortgage rates. And, if you know how mortgage rates work, you’ll also know how to get a lower mortgage rate on your next home purchase.

Dave Meyer, VP of Market Intelligence at BiggerPockets, is back to break down mortgage rates for those of us who don't have economics degrees. Simply put, the Fed controls the federal funds rate, which influences the bond market, and the bond market influences how much banks charge you in interest. Already lost? Don’t worry; Dave’s got the whiteboard out to walk you through every step of mortgage rates explained. He’ll also show you EXACTLY what you have to do to get a lower interest rate on your next mortgage.

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The Math Behind Mortgage Rates and Why They’re Staying Put:
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[erik_arman]

FINALLY a video explaining mortgage rates in a clear and concise manner! Awesome!

[lubosimaboshe]

Awesome video please do more on mortgage and private financing 👍 😊 thank you

[ArturoRubio-hi]

How can o get low interest rate in California

[DanielDoesRentals]

All of my rental property loans are amortized over 20 years, but have a balloon payment at 15 years. Also, they are all 5 year ARM loans... however one thing not mentioned in this video is that the bank is going to set a lower limit on the ARM loans at which they will never lower the rate below a certain rate ( My lower limits right now are at 4.5%). So if by chance the rates were to drop real low again I would have to refi in order to get my rate lower then 4.5%.

[aprilvancleve]

Excellent presentation! Thank you for the clarity. I'm looking forward to the 28th!
I'd love to dig more into the 10 year treasury rate as well.

[gingerpoweraa]

The rates aren’t that high.
If they go lower then the prices will rise.

[aronrodrigues]

Rates are not high. It is lower than in Ireland, Portugal and Brazil. Home prices that are crazy here in comparison to income.

[sukhirandhawa]

Mortgage rates need to go higher i think 8%