Why have mortgage rates been low lately? And what are the determining factors for the rates?

We are planning to refinance our house, and we want to get an idea on when to lock a rate and apply for a loan form the bank.Why have mortgage rates been low lately? And what are the determining factors for the rates?
Rates have been lower because the market has been slower. Now (between Thanksgiving and Christmas) is always the best time of year to purchase or refinance. Rates are usually lower at this time of year.Why have mortgage rates been low lately? And what are the determining factors for the rates?
Rates are controlled by the 10 yr treasury bond, and more specifically by MBSs, or mortgage-backed securities which are also traded publicly on the secondary market.





A rule of thumb is that when bond prices drop, mortgage rates rise, and when bond prices rise, interest rates go down.





There are many factors that come into play, including inflation. Because the Fed has kept rates steady, inflation worries have subsided, and interest rates stay down as inflation is perceived to slow as well.





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