New Mortgage Rates in Massachusetts Explained (Why They Change & What Actually Matters)

Mortgage Rates in Massachusetts Explained (Why They Change & What Actually Matters)

Mortgage rates are the most watched number in real estate — and also the most misunderstood.

Many buyers believe mortgage rates are set by the Federal Reserve.
They aren’t.

 
What Actually Controls Mortgage Rates
Mortgage rates follow the bond market — specifically mortgage-backed securities.

Rates move based on:

Inflation expectations
Employment data
Treasury yields
Global economic outlook
This is why rates can drop even when the Fed raises rates — or rise when the Fed cuts.

 
Why Two Buyers Get Different Rates
There is no single “today’s rate.”

Your rate depends on:

Credit score
Down payment
Property type
Occupancy
Loan size
That’s why online averages rarely match real quotes.

 
The Mistake Buyers Make
Most buyers focus entirely on rate instead of outcome.

But payment = price + taxes + insurance + rate.

A slightly lower rate during a competitive market can result in a higher payment due to price increases.

 
The Strategic Perspective
Understanding today’s housing market means recognizing:

Rates influence timing.
Inventory influences pricing.
Payment determines affordability.

Buyers who understand this make clearer decisions and avoid waiting cycles.