Why Mortgage Rates Change—Sometimes Several Times a Day

Mortgage rates respond to changing prices in the markets where mortgage-backed securities trade. Unexpected inflation, employment, consumer spending, or central-bank commentary can quickly change investor expectations and bond yields.

Lenders do not necessarily adjust their rate sheets with every market movement. They may reprice when changes become large enough or when volatility increases. As a result, two quotes obtained on the same day can differ even when the borrower's qualifications have not changed.

This lesson is general educational information, not individualized financial advice or a mortgage-rate quote. Loan programs, rates, fees, and eligibility vary by borrower, property, lender, and market conditions.

Source and further reading: Housing Brief / MBS Live Mortgage Education Library. This lesson is an original explanation by the Carson Home Team; source text is not reproduced.