Loan

Rates

The Lowdown On Rates

The interest rate on your loan can impact the amount of money that you pay each month and over the life of your loan, so naturally, you want to get a highly competitive rate. After all, even a percentage of a point off can put thousands of dollars back into your pockets. This is why comparing interest rates is such an important part of the mortgage process.

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What Drives Interest Rates

National resources with a community-oriented service approach.

Shining Star Funding maintains a national presence, but with 1,000 advisors, we pride ourselves on our local market expertise.

What Drives Interest Rates

National resources with a community-oriented service approach.

Shining Star Funding maintains a national presence, but with 1,000 advisors, we pride ourselves on our local market expertise.

Is The Lowest Rate Really The Lowest?

The “lowest” interest rate is really the rate that fits your unique situation. Your finances, credit score, and even the type of loan you need all play a part in determining your interest rate.

If you hear an advertisement promising the “lowest rates,” know that it is impossible for any lender to claim the lowest rates. It’s important to take a close look at the various factors unique to your situation. For example, the interest rate for a homebuyer with an 800 credit score, a sizable down payment, and the ability to pay points at closing may be quite different from other borrowers.

You are an individual with a unique financial history, and there may be many loan programs available to fit your personal goals. These factors are what will determine the true rate that you qualify for, no matter what promotion you see on the Internet.

Is The Lowest Rate Really The Lowest?

The “lowest” interest rate is really the rate that fits your unique situation. Your finances, credit score, and even the type of loan you need all play a part in determining your interest rate.

What Drives Interest Rates

Mortgage rates are affected by numerous factors

Inflation

Mortgage rates are very sensitive to inflation. When inflation rates go higher, interest rates often rise as well.

Economy

When GDP and employment rise, it’s a sign of a growing economy, meaning greater demand for real estate. When demand rises, so do interest rates as there is more demand than money to lend.

Investors

Bonds are typically a safe investment so when the economic outlook is poor, they flood to the bond market. When there are more investors in bonds, the bond yield rises, and mortgage rates tend to rise as well.

Federal Reserve

When the Fed raises or lowers the federal fund’s rates (the rate lenders charge each other), it creates a ripple effect and typically results in an impact to mortgage rates.

Download the FULL infographic explaining all aspects of what drives interest rates

What Drives Interest Rates

Mortgage rates are affected by numerous factors

Inflation

Mortgage rates are very sensitive to inflation. When inflation rates go higher, interest rates often rise as well.

Economy

When GDP and employment rise, it’s a sign of a growing economy, meaning greater demand for real estate. When demand rises, so do interest rates as there is more demand than money to lend.

Investors

Federal Reserve

When the Fed raises or lowers the federal fund’s rates (the rate lenders charge each other), it creates a ripple effect and typically results in an impact to mortgage rates.

Download the FULL infographic explaining all aspects of what drives interest rates

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Copyright ©2025 Shining Star Funding A division of American Pacific Mortgage Corporation | NMLS ID # 1850 (www.nmlsconsumeraccess.org) | CA-DRE #01215943 | 6101 Bollinger Canyon Rd #344, San Ramon, CA 94583 Phone (925) 820-2981 | Licensed by the Department of Financial Protection and Innovation under the California Residential Mortgage Lending Act.|Not Available in New York

For informational purposes only. No guarantee of accuracy is expressed or implied. Programs shown may not include all options or pricing structures. Rates, terms, programs and underwriting policies subject to change without notice. This is not an offer to extend credit or a commitment to lend. All loans subject to underwriting approval. Some products may not be available in all states and restrictions may apply. Equal Housing Opportunity.
Interactive calculators are self-help tools. Results received from this calculator are designed for comparative and illustrative purposes only, and accuracy is not guaranteed. Shining Star Funding is not responsible for any errors, omissions, or misrepresentations. This calculator does not have the ability to pre-qualify you for any loan program or promotion. Qualification for loan programs may require additional information such as credit scores and cash reserves which is not gathered in this calculator. Information such as interest rates and pricing are subject to change at any time and without notice. Additional fees such as HOA dues are not included in calculations. All information such as interest rates, taxes, insurance, PMI payments, etc. are estimates and should be used for comparison only. Shining Star Funding does not guarantee any of the information obtained by this calculator.