How to closely follow mortgage rates

Financial markets provide valuable insight for investors and for consumers. However, many of the best resources are often overlooked, due to information that is rarely expressed in layman’s terms. Knowing how to closely follow mortgage rates could enable you to secure an attractive interest rate that saves you a lot of money.

Why Following Mortgage Rates Makes Sense

When buying a home, a low-rate mortgage loan could improve your purchasing power. While home buyers are generally focused toward rates on 30-year fixed-rate mortgage loans, many real estate agents recommend obtaining a 1-year adjustable-rate mortgage. Loans with shorter repayment terms enable investors to recoup their money faster, therefore, the interest rates are typically lower.

Although, there are times when a 1-year arm, a 3-year arm and a 30-year fixed-rate mortgage are so close in price that it makes sense to get the longest fixed-rate term that you are qualified to receive.

In some cases, it may be more advantageous to secure a 1-year arm that you can refinance before an interest rate adjustment occurs.

By closely following mortgage rates, you might be able to refinance with a 15-year home loan that cuts years of payments from your existing term. Even a savings that is equivalent to a half of a percent could amount to a huge savings on a cash-out refinance.

Essentially, you can largely ignore rumors and water cooler conversations about various financing projections, when you are armed with information to closely follow mortgage rates.

Monitor the 10-Year Treasury Yield

Movements in the Treasury market are often indicative of the direction for mortgage interest rates. When the yield shows incremental adjustments that are climbing, the logic suggests that certain risks in the market are likely to trend toward higher mortgage interest rates.

When Treasury yields are descending, it is a favorable sign that mortgage rates are likely to improve. Monitoring the 10-year Treasury yield could enable you to select a wise time to obtain a home loan.

Check the Bond Market

Mortgage bonds are generally long-term investment products that react to the performance of the 10-year Treasury yield. Rising bond prices are a sign of favorable conditions, while falling bond prices could signal that a higher probability exists for mortgage rate increases.

Review Federal Reserve Meetings

Approximately every six weeks, the Federal Open Market Committee assembles to review and to discuss the status of the economy. A recap of the meeting shortly follows to express certain monetary forecasts and planned actions. By observing messages from the Federal Reserve, you can also use the guidance toward securing a home mortgage loan.


Typically, before mortgage rates rise or fall, there are some solid economic indicators that reflect a noticeable trend. You can also tune into market news and review popular financial websites to closely follow mortgage rates.

Speaking with a knowledgeable lending professional about mortgage rates is a prudent idea. A licensed loan officer can contact you if the mortgage rate and the term that you are seeking becomes available.

Contact Prospect Financial Group today to inquire about obtaining a mortgage rate lock.


Jason Vondrak

Company President

Prospect Financial Group

948 Garnet Avenue

San Diego, CA 92109

NMLS: 349089 | BRE: 01837707


Jason Vondrak has been in the mortgage industry since 2004 and co-founded the mortgage brokerage Prospect Financial Group in 2006 in San Diego, California. Today he serves as President and CEO of Prospect Financial Group and the president and founder of Prospect Property Group, a real estate development company, established in 2012.

“I’ve had the privilege to serve in an industry that exists to ensure homeownership remains among the top priorities of government and citizens alike. Over the years, it has been a pleasure working alongside homeowners, real estate professionals, and business associates combining efforts and teaming up to help homeowners realize the dream of home ownership.”