As rates have oscillated up and down with extremes this year, the lower rates have actually been bad for the mortgage industry as a whole. How could lower rates be bad?
First, it allows all of the unscrupulous originators to stay in the business. When rates were heading higher, many of these individuals no longer were in a position to switch and bait. Consequently, they were heading towards the exit door pretty swiftly. Now that rates have dipped again...they turn around and get back in their old routine.
Second, the promise of lower rates have consumers chasing deals. Many consumers are no longer in a position to benefit from lower rates because the cost of money has become more expensive and the cost of money has become directly tied to credit rating. Consumers are paying application fees, appraisal fees, credit report fees, etc...with no chance of ever closing.
Lastly, lower rates even hurt the consumer who can qualify and benefit from the rate improvements. This occurs due to the influx of applications to lenders who are running on shoestring budgets and staff shortages. Underwriting time has ballooned for even the creme of the crop consumer due to all the loans that have to be reviewed from the previous two reasons why lower rates are bad.
In conclusion, it is absolute that you work with a Certified Mortgage Planning Specialist today. Make sure to qualify the mortgage professional who is getting ready to place you into to the largest liability of your life. Visit my website to learn more about what my company can do for you:
www.TheBarathGroup.com
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