A little known fact, mortgage rates fluctuate on a daily basis. Daily mortgage rates are reliant on the prime interest rate, that is the rate at which the government sets for bank to bank loans. At the end of each day a bank must have a certain amount of money in reserve and if they cannot meet that reserve than they go to other banks to borrow the money.
There are several factors that are considered when it comes to the daily rates:
Inflation
Consumer Activity
Supply and Demand
Competition for Money
How much is money worth? Well that depends on which country you reside in and how much that countries dollar is worth, so inflation plays a roll in how much daily mortgage rates will be. Consumer activity also plays a roll in Finance rates. If there is a huge surge in consumer activity it will positively effect the inflation rate and in turn will effect the mortgage rates.
Supply and demand is a key factor in daily rates. If there is a high demand for mortgage dollars that will decrease the daily rate. Competition for money amongst banks also effects the daily rates, if there are a lot of banks that can not meet their reserve at the end of the day, the competition for money becomes fierce this can result in higher daily rates for mortgages the next business day.
These fluctuations are rarely felt in the market until they are great fluctuations but are still a consideration when shopping for mortgages.
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