How Rates move
Conventional and Government lenders set their rates based on the pricing of Mortgage-Backed Securities (called MBS) which are traded in real time in the bond market.  This means rates and loan fees (called mortgage pricing)move throughout the day, affected by a variety of economic or political events.  When MBS pricing goes up--good -- mortgage rates or pricing generally goes down- bad.  Tracking these securities real-time is critical to assist in obtaining you the best loan pricing.  For more information about the rate market, contact me directly.  I’m among few mortgage professionals who have access to live trading screens during market hours. 

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​Closing costs and lower rates-what to know. 
So why isn't the lowest interest rate the best deal? First- lower rates come with more lender fees (points). There's a break even point to contend with when paying closing costs, points and fees.  If it costs you $5k for a certain rate and the higher rate costs zero but has a monthly payment $50 higher --it can take a hundred months to break even!  And with the average loan lasting 60 months or less--that doesn't make sense.

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So why do lenders advertise really low rates with all of those points and fees?  Because they know most consumers look at the interest rate only and don't do the math.  Unfortunately that advertising strategy works really well on a lot of people.