Your home financing is a big commitment and big investment. You need to make sure you are happy with your loan.
As an average consumer it is hard to study the mortgage market in these volatile times and accurately decide when a good time to lock into a new interest rate will be. Rates are changing multiple times a day.
The first thing you need to understand is that what is causing the rates to go up and down right now with the major banks may have nothing to do with the stock market or treasury yields or any of the other typical indicators that we can look at to try and follow the trends of mortgage rates.
2007 and 2008 were devastating years for mortgage companies. The ones not included in the over 300 that went out of business did not come out the other end of the real estate market crisis looking like they used to. Many banks have had to drastically scale down there work force to stay afloat.
Although the reduced workforce has helped some banks stay open it is causing serious service issues when rates are down like right now. The banks are experiencing an increased amount of loan volume and they do not have the staff to handle to the work load. To counteract this lack of staff they are being forced to price themselves out of the market and raise their interest rates artificially high to stop the influx of new business.
So all the indicators that we study as consumers to determine when to lock into a new mortgage rate may not apply. The market is moving up and down because of the lack of work force of the individual banks, not the change in price on the mortgage notes.
The best way to ensure that you are not gambling with your mortgage rate that you will have for years is to make sure you align yourself with a solid mortgage company that can collect your qualifying information upfront and watch the market for you. That way they can capitalize on the sudden drops in rates when the banks have caught up on their loan pipelines for you. - 15224
As an average consumer it is hard to study the mortgage market in these volatile times and accurately decide when a good time to lock into a new interest rate will be. Rates are changing multiple times a day.
The first thing you need to understand is that what is causing the rates to go up and down right now with the major banks may have nothing to do with the stock market or treasury yields or any of the other typical indicators that we can look at to try and follow the trends of mortgage rates.
2007 and 2008 were devastating years for mortgage companies. The ones not included in the over 300 that went out of business did not come out the other end of the real estate market crisis looking like they used to. Many banks have had to drastically scale down there work force to stay afloat.
Although the reduced workforce has helped some banks stay open it is causing serious service issues when rates are down like right now. The banks are experiencing an increased amount of loan volume and they do not have the staff to handle to the work load. To counteract this lack of staff they are being forced to price themselves out of the market and raise their interest rates artificially high to stop the influx of new business.
So all the indicators that we study as consumers to determine when to lock into a new mortgage rate may not apply. The market is moving up and down because of the lack of work force of the individual banks, not the change in price on the mortgage notes.
The best way to ensure that you are not gambling with your mortgage rate that you will have for years is to make sure you align yourself with a solid mortgage company that can collect your qualifying information upfront and watch the market for you. That way they can capitalize on the sudden drops in rates when the banks have caught up on their loan pipelines for you. - 15224
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To learn more about locking mortgage rates in this volatile mortgage market please start by viewing some real time mortgage rates.
