What Impacts Mortgage Interest Rates?

black calculator near ballpoint pen on white printed paper
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If you’re looking for a home or about to sell one, you know that monthly mortgage interest rates are a key factor in housing affordability. But what makes rates go up or down? What national economic indicators affect the interest you’ll pay?

The information out there can be confusing. Should you pay attention to stocks, T-bills, bank rates, short-term rates, crystal balls or the Federal Reserve? Unless you’re a financial professional, all the data can make your head spin.

Here is the one interest rate indicator that will tell you where mortgage rates are headed: Bonds. Bonds, bonds, bonds. Specifically, bonds called mortgage backed securities, or MBS.

It gets even simpler, but first here’s the Wikipedia MBS definition:

A mortgage-backed security (MBS) is a type of asset-backed security that is secured by a mortgagor collection of mortgages. Mortgages are sold to a group of individuals (a government agency or investment bank) that securitizes, or packages, the loans together into a security that investors can buy.

Still sounds too wonky? Wait! Here comes the even simpler part. The bond impact simply works like this — bond market up, interest rates down. Bond market down, interest rates up. How’s that for easy?

Where can you find the latest info? There’s lots of information just about anywhere on the internet, like Mortgage News Daily  I love the blog!  But to get the best information for your particular needs, talk to a financial professional.

2019 – Terrazzo and Taxes

Have you thought about how your 2018 return will be affected by recent changes?  There’s good information here, from Forbes.

I found the tables below helpful.  Additional information follows.

Married filing jointly:

Tax rate Taxable income bracket Tax owed
10% $0 to $19,050 10% of taxable income
12% $19,051 to $77,400 $1,905 plus 12% of the amount over $19,050
22% $77,401 to $165,000 $8,907 plus 22% of the amount over $77,400
24% $165,001 to $315,000 $28,179 plus 24% of the amount over $165,000
32% $315,001 to $400,000 $64,179 plus 32% of the amount over $315,000
35% $400,001 to $600,000 $91,379 plus 35% of the amount over $400,000
37% $600,001 or more $161,379 plus 37% of the amount over $600,000

Single Filers

Tax rate Taxable income bracket Tax owed
10% $0 to $9,525 10% of taxable income
12% $9,526 to $38,700 $952.50 plus 12% of the amount over $9,525
22% $38,701 to $82,500 $4,453.50 plus 22% of the amount over $38,700
24% $82,501 to $157,500 $14,089.50 plus 24% of the amount over $82,500
32% $157,501 to $200,000 $32,089.50 plus 32% of the amount over $157,500
35% $200,001 to $500,000 $45,689.50 plus 35% of the amount over $200,000
37% $500,001 or more $150,689.50 plus 37% of the amount over $500,000

Bracketing Examples:

Single Filer

2018-tax-brackets-Example-2_Desktop-1440x546

Aren’t we all very interested in taxes?  Read more.

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What about trends for our comfort?  You may rethink your colors and textures.  And wallpaper lovers everywhere will rejoice!  2019 is bringing a great deal of style with it.

I love the look of the terrazzo in the bath!  I don’t know if I’m bold enough to put those cabinets in my kitchen.  What about you?  Color, conversation, craftsmanship – trends for 2019 – read about it!