Why do interest rates fluctuate daily?
Mortgage Rates are determined by the supply of money on the open market. Every day money flows in and out of different investments based upon investors’ perception of where the greatest opportunity lies for them to make money. When money flows into the Stock Market the market rallies and much of it comes from the Bond Market where money has been sitting making a safe return. There is now less money available to lend and the price of money increases and rates go up. When money flows out of stocks (the Stock Market declines) it usually flows into a variety of Bonds which tend to be much safer investments. Rates fall when this occurs because there is more money to lend.
