The circus like atmosphere continues in the mortgage industry as we try to figure out daily what is going on with mortgage rates. This article on CNBC.com (http://www.cnbc.com/id/23724112) addresses this real fact. That not only is it hard to predict what rates will do, we are now having a problem knowing what it is that makes the rates do what they do.
What are making rates move today? Is it the latest cut by the Fed? Is it the stock market making a rally? Is it yet another increase in the price of gas? Who knows? Not the experts. "The reality is that it used to be relatively easy to predict where mortgage rates were going to go," says Mike Larson, real estate analyst for Money & Markets, a business website. "You keep your eye on things like the broader economy. More recently, it's been almost impossible to predict. The thing that's going to make a lasting impact on mortgage rates is whether you can get through this period of credit turmoil." You got that right Mike.
The motto at the office is "Like the Michigan weather, if you don't like the rates, just wait 5 minutes. They'll change!". And that is true! It is common for us to get rate sheets in the morning and then a reprice in the afternoon. It's funny how fast mortgage officers will move to save 25 bps on their yield spread. Certainly makes the day exciting.
Mortgage rates, like the economy, will stabilize. Until then, we'll read everything we can to help us advise our clients concerning rate locks. Their protection is the most important thing we can do.
I'm just hoping someone is out there trying to protect us in the mortgage business.
If you have any comments on this article, I would love to hear what you have to say! Feel free to comment below.
Thanks for reading!
Dan Tenchall
Great Lakes Mortgage Funding
For FREE Mortgage tips, Mortgage Calculators,must have articles and much more please visit my website!
Michigan Mortgage Rates
(586) 532-0600
dan@glmf.com
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment