There are many different factors can affect current mortgage rates. Economy, supply and demand, bank rate and of course your current credit history can affect your personal mortgage rate.
Money supply comes from investors and money demand come from borrowers. Capital investors took risk to invest their money for return of their investment such as interest rate. Home buyers borrow money to buy a house and pay monthly mortgage. Monthly mortgage payment can contain more than one of these elements: principal payment, interest payment, property taxes, home insurance , home warranty and private mortgage insurance.
Federal reserve rate affects bank rate, when fed cut the rate short term rate will be lower and when fed raise the rate the short term rate will increase too. Mortgage is a long term rate, however the short term rate eventually will affects long term rate as well.
The current economy condition will affect mortgage rate as well. Your credit history affects your personal mortgage rate. There are three credit bureau in United States where you or your mortgage lender can check your credit score and credit history, those credit bureau are Experian, Trans-Union and Equifax.
