Simply stated, interest rates are all about "supply & demand."  The long-term mortgage rates (10, 15, 20 & 30 year fixed) are based on the 10 & 30-Year Bond Markets (quoted daily on Wall Street).  When the bonds are purchased, money comes into the Bond Market, the Bond Market goes up & the bond yields go down.  This lowers the interest rates because there is a surplus of money to lend.

The opposite happens when the Bonds are sold.  There is a tightening of the money supply, driving the Bond Market lower and the Bond Yield higher to make purchasing the Bonds more attractive.  This raises the long term mortgage rates.  Thus, the cycle is created.

Please note that mortgage interest rates always go up faster than they come down.  If you are thinking about purchasing a new home or refinancing your home, allow AP Lending to get your loan application package started, so you can lock-in & are assured of a low interest rate that will meet your goals.