All the news about the Federal Reserve raising interest rates over the last few months may sound like doom and gloom but that increase doesn’t have the effect on mortgage rates that many people think.

When the feds raise their rates, this will affect other kinds of credit like credit cards, home equity lines of credit, and auto loans. The one factor that has more of an effect on mortgage rates is the 10 year treasury rate; when the 10 year or T-bill rate goes up, then mortgage rates go up as well so that’s an easy way to monitor mortgage rates.

Another way is when lenders want to slow down their pipeline of incoming loans, they will artificially raise rates to slow down applications or when they need to increase their loan applications in the pipeline, they will lower rates to entice borrowers.

This is why using a mortgage broker like Indigo Mortgage is so beneficial as we have many lenders we work with and we search for the lender that will offer our borrowers the best rates and terms. Most other lenders are at the mercy of what their company says their mortgage rates are.

So when looking for a mortgage, make sure to shop that mortgage and be sure to include a mortgage broker like Indigo Mortgage. We’ve been serving New Mexico homebuyers since 2003 with many different loan programs for homebuyers.