Your name saw this post on The ActiveRain Real Estate Network and thought it might be of interest to you. Please see the link below to review the post.

Rates Going Up over the Holidays????
Well, the Holidays are officially upon us.  There are so many people who have already left for the holidays.  We're seeing what happens during this time each year.  Rates generally go up.  That is exactly what has happened during this season.
Last week the Fed announced that it was going to buy up most of the mortgage backed securities.  When mortgage backed securities or MBS's are bought up, rates drop down.  Most people think that when the stock market goes down rates go down or even inversely when the stock market goes up.....rates go down.  The reality is that there often times is a parallel relationship.  But mortgage markets aren't determined by bond prices or bond yields.  Nor are rates determined by how good or how bad the stock market does.....
THE BOTTOM LINE is that rates are determined by the movement of mortgage backed securities or, again, MBS's.  The more that MBS's are bought, and the more scarce that they are in the financial markets, the more that you will see rates drop.  The more that MBS's are available, the higher the rates. IT'S THAT SIMPLE TO UNDERSTAND. 
So....why rates increasing over the Christmas season?  This too, is fairly simple to ... more

__________________________________________________
Are you on The Rain? Grow Your Network!