Will Mortgage Rates Continue to Fluctuate?
A simple explanation of interest rates is the relationship between their level and their yield curve. The shorter the term of the bond, the lower the interest rate, while the longer the term of the bond, the higher the interest rate. Interest rates, therefore, reflect a risk premium attached to holding longer-term debt. But if you don’t understand how interest rates are determined, you might get confused. In this article, we’ll review the relationship between interest rates and yield curves, and how they affect interest rates. Mortgage interest rates are expressed as a percentage of the total balance, making them... Read More