Reality Check

Reality Check
Courtesy of Sean La Rue
To All Customers:
With a never ending stream of babble from the news media about low 4% interest rates for everyone in America, the one thing we can tell you for certain is that the government is not going to pay for it. If there is anything in this “mysterious” stimulus package to lower mortgage rates, it will only be some kind of assistance to help sell housing inventories; not to help lower the rates further for those making regular payments, trying to refinance.
Mortgage rates are derived from bonds which are traded on the “free market”. Mortgage rates are now trading in a range between the upper 4% and low 5% range. This range is lower than it has been in the 37 years Freddie Mac has been keeping records.
Trillions of dollars have been pulled out of the stock market and investors are sitting on the sidelines waiting for the market to stabilize and it will happen! When the money starts pouring back in, fixed rate mortgages will shoot up, 1%, 11/2% or more. Who knows? But they will go up and maybe overnight.
When considering mortgage refinancing, do not expect to get the same rate as your neighbor, friend or relative, unless your financial profile, credit score, loan to value, property type, property usage etc., are identical.
If you’re shopping rates, know that any published rate is obsolete before the ink dries; any quoted rates without a rate lock are probably meaningless. The bond market is in constant motion, just like stocks.
Unlike many of our competitors, we monitor the bond market live. We see directional changes as they happen and get lock alerts from our service provider.
Those of us that have been in the mortgage industry a while have lists of customers that tried waiting out an extra 1/8% to ¼% and completely missing the market lows. We see it every time rates dip.
Don’t miss out. Call me today and start saving money now.