Mortgage rates are driven by the market for mortgage-backed bonds, which moves daily with inflation, the economy and investor demand. Your personal rate starts from that market price, then is adjusted for your credit score, down payment, loan type, property type, occupancy, loan size and lock period. An advertised rate assumes a near-perfect file, which is why your quote is often different.
What moves rates day to day
- Mortgage-backed securities. Lenders sell most loans to investors as bonds. When those bonds are in demand, rates fall. When investors demand more yield, rates rise.
- The 10-year Treasury. Mortgage rates tend to move with it, because investors compare the two.
- Inflation and economic data. Strong inflation or jobs reports often push rates up. Weak data often pulls them down.
- The Federal Reserve. The Fed sets a short-term rate, not mortgage rates. Its decisions and outlook influence the bond market, which then moves mortgage rates, sometimes in the opposite direction of what headlines expect.
Rates can change more than once in a day. That is why a quote is only real once it is locked. See Rate Lock vs Float.
What sets your personal rate
Starting from the day's market price, lenders adjust for:
- Credit score. Pricing moves in bands. See What Credit Score Do I Need?.
- Loan-to-value. More down usually means better pricing.
- Loan program. Conventional, FHA, VA, jumbo and non-QM each price differently.
- Occupancy. Primary residences price best, then second homes, then investment properties.
- Property type. Condos and two-to-four unit homes can carry adjustments.
- Loan amount. Very small and very large loans can price differently.
- Cash-out on a refinance.
- Lock period. Longer locks cost more. See Extended Rate Lock for New Construction.
- Points or credits you choose. See Are Mortgage Points Worth It?.
Why the advertised rate is not your rate
Advertised rates usually assume a high score, a large down payment, a single-family primary residence and often discount points. Ads that state a rate are required to show the APR too, and a big gap between the two is a sign of points or fees. See APR vs Interest Rate.
How to compare quotes honestly
- Get quotes on the same day, for the same program, loan amount and lock period.
- Compare the rate and the lender's fees together, using Section A of the Loan Estimate. See How to Read a Loan Estimate.
- Ask whether points are included.
- Shop within a short window so your credit is not affected more than once. See Does Shopping for a Mortgage Hurt My Credit?.
The part of your rate you control
You cannot move the bond market. You can raise your score, change your down payment, choose your lock timing, and pick the right program. Those decisions often matter more than which week you lock. Check today's pricing on our rates page, then ask me to price your actual scenario.
Why ask me
- I answer the question before I sell you anything. If renting, waiting or a different program is the better move, I will say so.
- Real numbers, not a calculator guess. I price your actual scenario, side by side, with the fees on the page.
- Every program under one roof. Conventional, FHA, VA, jumbo, and non-QM options like bank statement, DSCR and asset-based loans, so the program fits you instead of the other way around.
- You talk to the principal. Ricky Khamis is President of EPiQ Lending, NMLS #173141, lending in Arizona since 1999 and a 2025 Presidents Club Winner at CMG Home Loans. Direct line: (480) 999-9842.
EPiQ Lending is NMLS #1936984, at 7975 N. Hayden Road, Suite A-101 in Scottsdale. Verify all of it before you trust any of it: Ricky's EPiQ Lending profile, the Scottsdale branch, and the license itself at NMLS Consumer Access. Hold every lender to that standard, including us.
More plain-English answers in the Mortgage Education library.
Equal Housing Opportunity. This is general information, not a commitment to lend or an offer to extend credit. Program guidelines, eligibility requirements and documentation standards vary by investor and change over time. Rates, terms and program guidelines change and depend on credit approval, property appraisal and other qualifying factors. Not all applicants will qualify. This is not legal or tax advice; consult a qualified professional about your own situation.
Find out which program actually costs you less
FHA, conventional and jumbo price the same borrower very differently once the mortgage insurance is compared across the years you will own the home. Tell me the shape of your file and I will run them side by side.
Looking at a specific home? Send me the address and I will run the numbers: rickykhamis.com/analyze
