What moves mortgage rates day to day?

Lenders sell most mortgages to investors, bundled into mortgage-backed securities. The price investors will pay for those bonds shapes the rates lenders can offer.

When investors pay more for mortgage bonds, rates tend to fall. When they pay less, rates tend to rise. Lenders watch these prices through the day and update their pricing when the market moves.

Rates can change more than once in a day when big news hits. These are the reports and events markets watch most closely:

• Inflation reports, since inflation eats into what bond investors earn
• Jobs and wage data, which signal how hot the economy is running
• Federal Reserve meetings, statements and comments
• Treasury yields, especially the 10-year
• Global events that send investors toward safer assets

If a monthly inflation report comes in hotter than expected, bond prices often fall within minutes. Lenders may reprice rates higher the same afternoon.

A softer-than-expected jobs report can do the opposite. Investors buy bonds, prices rise and rates may drift lower.

Mortgage rates tend to move in the same direction as the 10-year Treasury yield. They usually sit above it, and the gap widens and narrows with market conditions.

The market sets the starting point, but your own details shape the rate you're offered on any given day. Your credit score, the equity in your home, your loan type and term, and whether you pay discount points all play a part.

Improving your credit or building equity won't change the market, but it can change where you land within it.

Because no one can reliably time the bottom, many homeowners refinance when the new payment clearly works for them. Rates shown on CapCenter's site are for a 30-day lock period, and until you lock, your rate can move.

With ZERO Closing Costs (restrictions apply), there are no closing costs to recoup, so you can refinance again if rates fall further. A loan consultant can show you today's options.