Mortgage Rates Move and So Does the Typical Chattanooga Mortgage Loan

Low mortgage rates are often good news for home buyers because they translate to lower payments; on the other hand, high mortgage rates are prime opportunities for home sellers because they stand to earn more. In general, mortgage rates are jumpy; you can't expect them to stay constant forever. Colin Robertson, a former account executive for a mortgage lender in Los Angeles, explains the basics of mortgage rates and how they move.

First, mortgage rates in the market often move by eighths (0.125 percentage points), but the actual rate offered to you will be a whole number. Even if the market rate is pegged at 3.75 percent today, a typical Chattanooga mortgage loan may be rated at 4 percent. Take note that the mortgage rates in news outlets are the local or national average, not the actual mortgage rate you can receive. However, movement to a lower bracket (e.g. from 4 percent to 3 percent) can be a big bonus for the buyer.

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