By Kevin Bader, Featured Contributor from National Bank of Commerce

Mortgage rates are tied to the basic rules of supply and demand. Factors such as inflation, economic growth, the Fed’s monetary policy and the state of the bond and housing markets all come into play.

For the week ending September 21 Mortgage interest rates had continued to press upward from previous levels. There was a break that appeared to be developing however and Wednesday of this week it presented itself when the Federal Open Market Committee concluded their meeting and issued their statement. They raised the Fed Funds Rate to 2.00% - 2.25% and in doing so a day later the Prime Rate increased from 5.00% to 5.25%. The reaction in the markets to the language included in the report along with the economic news that has followed over the past few days is what is driving interest rates to slightly lower levels as this week draws to a close.

Over the past two days, rates have returned to the previous levels they were at a week ago. That doesn’t mean rates will continue to improve. The trend shows that as the labor market continues to strengthen and economic activity has been rising at a strong rate the interest rates will continue to rise as well. With some slight drops from time to time based on market activity.



Kevin Bader--Mortgage Loan Originator at Nation Bank of Commerce

1919 Cahaba Road, Mountain Brook, AL 35223

To complete an application online, click here!

205-313-8119 (Office)   205-789-9571 (Cell)

NMLS # 675008 / Company NMLS # 514390