• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Sonoma County Mortgages

Contact Us About Mortgage Financing

All financing provided by New American Funding

(707) 217-4000 | Prequalify Now

Search Sonoma County Mortgages

  • Home
  • Purchase
    • How Much Down Payment To Buy A Home?
    • How Much Income You Need To Buy A Home
    • How Much Should I Save For Buying A Home?
      • How Rates Affect Payment
    • No PMI Mortgages
    • FHA Loans
    • Sonoma County Disaster Loans
    • Jumbo Loans
  • Refinance
    • Mortgage Rates
    • Does It Make Sense To Refinance?
      • Get Your Refi Paperwork In Order
    • How To Pay Off Your Loan Faster
    • How To Remove PMI
    • How Lenders Price & Quote Loans
  • Loan Programs
  • Payment Calculator
    • Mortgage Affordability Calculator
  • Blog
  • Videos
  • About SCM
  • About Scott Sheldon

Primary Sidebar

Sonoma County Mortgages is a part of New American Funding

New American Funding - NMLS #6606

Get Your Latest Rate Quote Now!

The Truth About The Media’s Reporting On Interest Rates

September 2, 2015 by Scott Sheldon

Share on Facebook Share on Twitter Share on Pinterest Share on LinkedIn Share on Email
The Truth About The Media’s Reporting On Interest Rates

Have ever heard about mortgage rates in the media only to then call a mortgage company and receive conflicting information? Here is why the media’s reporting on rates should be taken with a grain of salt…

Know this-real time information is critical. When you hear about mortgage rates moving in the news, by the time it actually prompts you to take action it is already hindsight, i.e. dated. Mortgage rates and pricing change just the way the price of the stock does. Mortgage pricing which stimulates rate movement, may change multiple times per day or remained unchanged, based on economic events unfolding domestically and internationally.

Stocks, Bonds & Mortgage Rates

Interest rates move at the choice of an alternative investment foregone. Investors on a broader picture place their money in equities or fixed income arena. When investors are optimistic about the economy, they buy stocks, moving their monies from the bond market to facilitate transactions. This action causes mortgage pricing and rates to worsen (go up). When negative or less than expected financial reporting is made publicly known, investors typically, tend to shy anyway from stocks, causing a selloff, shifting their monies into the fixed income/bond market, driving yields up and mortgage rates down. Mortgage rates improve (drop) based upon bad economic data. Strange as that may sound, lenders want to see yields in mortgage-backed securities rising, which is a driver and support layer for low rates. For example last week, the massive stock market crash sent mortgage rates plummeting lower for about 48 hours and then immediately deteriorated as the stock market regained its losses, and rates went back up .25%. If you heard about the news of the stock market crash with lower rates and then inquired about mortgage financing in 72 hours of that market movement, you would’ve been receiving much different rate and price quotes than what you otherwise may have heard about in the news.

The Media Does Not Offer Financial Guidance

Media outlets have a profit motive, which does not include watching out for your best interests. Put simply, their function is generating revenue, not determining for you when the optimal time for locking in your mortgage rate and price is, that’s role your loan professional takes working in tandem with your expectations. When you see a media tagline “Mortgage rates improved .375% this week “, call your loan professional for real time quote. In doing so, ask them what transpired in the market, and what pricing changes (which affect rates) occurred and those changes if any affects your loan specifically.

This is the type of thing, the media does not report, how economy rate changes may impact you financially. Remember by the time you hear it in the news, the rate and pricing has already changed. For example “30 year rates drop to 3.75%,” do not automatically assume that you’ll be able to get a 3.75% loan as your credit score, loan amount, equity, occupancy, loan size, loan purpose, and mortgage company (lenders price loans differently) impact your rate and cost quote on any given day.

Furthermore, do not be fooled by a slick mortgage advertisement, all mortgage lenders get their money from the same place and no lender, broker or bank, has a monopoly on the market. Ask questions and make sure to communicate with your loan professional especially about any rate and pricing expectations you may have, as that has direct bearing on what you’re going to pay over the next 360 months.

Need a mortgage? Begin with a free quote online now.

Related Mortgage Advice from Scott Sheldon

  • Get A Mortgage Rate Quote

    If you are looking for a Sonoma County Mortgage, get a mortgage rate quote. Mortgage…

  • Mortgage Shop Santa Rosa

    To Mortgage Shop Santa Rosa be prepared for current mortgage rates to change frequently. Everyone…

  • Comparing Mortgage Rates In Sonoma County

    What to look for in comparing mortgage rates in Sonoma County. The Federal Reserve came…

  • Lowest APR or Lowest Mortgage Rate?

    People purchasing and refinancing homes always are asking the question is it best to get…

Filed Under: Interest Rates, Mortgage Shopping, Mortgage Tips & Advice Tagged With: BAD CREDIT MORTGAGE, compare mortgage rates Santa Rosa, lowest interest rates, Santa Rosa mortgages, Sonoma County Mortgage Rates, sonoma county refinancing

Get Sonoma County Mortgages News and Updates in Your Inbox

Footer

SCM on Facebook

SonomaCountyMortgages.com

Connect on Facebook

SCM On Instagram

Follow Sonoma County Mortgages on Instagram

Follow on Instagram

SCM on Zillow

Zillow Reviews for Scott Sheldon, New American Funding

See Reviews on Zillow

Location & Contact

Sonoma County Mortgages and New American Funding are an Equal Opportunity Housing Lender

Scott Sheldon, Senior Loan Officer
NMLS ID# 287389
2455 Bennett Valley Road C107
Santa Rosa, CA 95405
1-707-217-4000
View SCM Map | Email Us!

Map of Sonoma County Mortgages New American Financing Office

View Map on Google

Copyright 2010–2023 SonomaCountyMortgages.com · About Us · Sonoma County Loans · Privacy Policy · Terms Of Use · Legal · Site Map

NMLS Consumer Access © New American Funding. All rights Reserved. NMLS ID#6606.
Corporate Office 14511 Myford Road, Suite 100, Tustin, CA 92780. We at New American Funding take great pride in our customer service and make it our number one priority. We encourage you to contact us for complaint resolution or any post-closing questions you may have regarding the servicing of your loan. We strive to have your experience with New American Funding a stellar one. In the rare case that our service did not meet your expectations, please call our customer care hotline at 1-800- 450-2010, ext. 7100 or you may contact us by email customerservice@nafinc.com. Please leave a detailed message and we will follow up with you no later than the end of the next business day. If you are using a screen reader or other auxiliary aid and are having problems using this website, please call 800-450-2010 Ext. 7100 for assistance.

State Licensing (Opens in New Window) | Privacy (Opens in New Window)
Terms of Use (Opens in New Window) | Electronic Consent Agreement (Opens in New Window)
Opens in new window Opens an external site Opens an external site in a new window