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STOCK MARKET AND RATES.

can the stock market be linked to the mortgage rates? it seems like the unsteadiness of the market is effecting rates, they are still rising. i trade bonds from time to time and have also been looking to purchase a rental property. but i have noticed last week the bond market had a huge sell off. its nice to have a place to come and get insight from professionals about this stuff. thank yall! by wildfire47 from Corpus Christi, Texas. Mar 4th 2019 Reply


William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,726 contributions

The short answer is yes, but let me explain.. Typically, when stocks are doing well, the bond markets trade down.. Since mortgage backed securities (a type of bond) are traded on the bond market, then when the market is favorable to stocks, the bonds have to pay a higher yield to attract buyers.. this is what raises interest rates.. Conversely, as the stocks dip, investors flock to the bond market and they are able to pay a smaller yield, effectively lowering interest rates. So to answer you question, the stock market is linked, but it's opposite.. stocks do good, rates go up.. stocks dip, rates go down.. This isn't the rule, but its very typical. Since President Trump took office, Wall Street looked at this favorably, and as such, rates have been steadily on the rise. I'm a preferred Lender with California and Arizona being my primary markets. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com NMLS# 226347 / LendUS, NMLS 1938/ AZMB0121893

Mar 5th 2019
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