NEWS OF MORTGAGE INTEREST RATES can be quite confusing for the average person if they’re just reading or listening to media accounts. Interest rates are up; no they are down; really they are just sideways. Reminds me of Abbott and Costello. Just this week I found two national stories on mortgage interest rates, one reporting that rates have inched up the other that rates have dropped significantly in the last week.

The reality of mortgage interest rates is that they change daily — sometimes even hourly — depending on market conditions. To make matters worse, interest rates are based on the risks associated with an individual loan file. The actual rate you receive depends on a bunch of factors, including the loan balance as a percentage of the value of the property, your credit profile, loan amount and the type of loan. In some cases the rate you will pay may be as much as half a percent different than someone else would pay to finance the same house — and that’s just the difference on prime loans.

To make matters worse, media outlets frequently use outdated information when reporting on mortgage interest rates.

Freddie Mac reports an average rate weekly that typically is released on Fridays. This average rate is the source cited most often by media outlets. Freddie surveys mortgage lenders at the beginning of the week to compile the average rate, then releases it on Friday. Where the problem occurs is when a market-moving event happens between the time Freddie Mac receives the data and the release of their results.

For example, a couple of weeks ago Janet Yellen, the new chair of the Federal Reserve, made a comment that was quite unsettling for the bond market. Her statement came on a Wednesday, causing rates to spike. But the average rate Freddie released that Friday was based on interest rates before Yellen’s comments, so media outlets were reporting that rates had fallen when actually they had increased.

Internet sites are another amusing source of information about mortgage interest rates. The mortgage industry is highly regulated, but the regulations regarding advertising of rates are in the dark ages and full of loopholes that allow unscrupulous types to advertise without regard to reality. There are some sites that are legitimate, but because of the complexity of risk-based pricing it is impossible to quote rates accurately without a full credit package, and in some cases an appraisal.

To be sure, figuring out what is currently happening with interest rates is not an easy task. Professionals in this business monitor bond markets and investor news feeds frequently throughout each day to stay informed and be able to offer the best advice to their customers and partners. The only reliable source for interest rate information is a reputable mortgage professional.

Guy Benjamin (CAL BRE License #01014834) writes a weekly column for The Herald, offering general information on real estate matters. As it is impossible to address all possibilities and variations, he will try to answer individual questions by readers who contact him at 707-246-0949 or gbenjamin@rpm-mtg.com.

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