Alex Jaffe

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FAQ > Rate Pricing > How are interest rates priced?

We price our rates daily off what is happening in the secondary market in the trading of mortgage backed securities (MBS). These MBS are bundles of mortgages being sold to investors as bonds. If these are selling well, and are in high demand, interest rates will fall. If there is poor demand for these bonds, then rates will rise.

This is the single greatest direct correlation for how we price rates.

Last updated on March 26, 2012 by Alex Jaffe

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