There are two key factors to watch when you are shopping for the best interest rate for your mortgage. The first is the Treasury Note and the second are Mortgage-Backed Securities, or MBS.
MBS is a type of investment that represents a bundle of home loans. It allows lenders to sell mortgages to investors, freeing up capital to issue new loans while providing investors with a steady income stream from mortgage payments. The Treasury Note moves in the same direction as an interest rate when you apply the spread. So, when the Treasury Note increases, typically the interest rate for a mortgage will also increase. MBS work in the opposite direction as interest rates. When the MBS increases, due to high demand from the market, the interest rate for a mortgage will typically decrease. For the average consumer, one of the best resources to track both markers is from the website MortgageNewsDaily.com. I've included a snapshot showing how the MBS has affected current mortgage rates on 3/25/25.
Understanding how the Treasury Note and Mortgage-Backed Securities impact mortgage interest rates can empower you to make smarter financial decisions. Keep a close eye on these key indicators to stay ahead of the curve. For real-time updates and expert insights, visit MortgageNewsDaily.com. If you’d like to discuss how these factors could influence your real estate decisions—whether buying, selling, or investing—feel free to give me a call. I'm here to help you navigate the market with confidence!
