Are Lower Interest Rates Just Around The Corner? Recent Industry Chatter Suggest That It Is!

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Mortgage and Lending

Are Lower Interest Rates Just Around The Corner?

There is a lot of chatter in my circles that suggest we may be entering a period where mortgage rates fall enough again to spur another run on refinances. The trend has been something taking shape over the last 6 weeks but the excitement came among a couple of pricing improvement's made by lenders yesterday. The last time we were able to offer rates as low as 3.25% for a fixed Rate Loan (05/27/2011) was back in the summer of 2009 when a surge of refinance applications over whelmed the industry due to employee shortages. This time people in the know are noticing a behind the scenes hiring drive by many of the big Banks and Lenders. This suggest they might be ready to lax rates enough to make affordability even more attractive to home owners and home buyers this summer.

Some are saying rates for short term fixed mortgages such as the 5 and 10 year notes may fall into the 2.750-2.99% range and a Government (USDA,VA,FHA) 15 or 20 Year Fixed Rate Loan could be in the 3.250-3.500% range. This remains to be seen but it would be a really good thing for the over all economy if that were to happen.

The key is to control the origination's so as not to overwhelm the people who are processing files for these lenders. That is the thing that keeps lenders from lowering rates suddenly to increase volumes. So it would appear a hiring run of service personal and the lack of cut backs in the loan originator area along with the recent slowly downward movement in pricing could be the signal that they ready to slowly drop those even lower.

 

Posted by

Jim Poole

Senior Loan Officer NMLS #351358

813.205.7958 Mobile

jptampa@live.com 

 

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Rainmaker
658,945
Mike McCann - Nebraska Farm Land Broker
Mike McCann - Broker, Mach1 Realty Farmland Broker-Auctioneer Serving Rural Nebraska - Kearney, NE
Farm Land For Sale 308-627-3700 or 800-241-3940

I saw just a few minutes ago an article saying they were lower...good luck to all the buyers who will be able to take advantage of them!!  Now if charge cards would only get into a fair interest rate.

May 27, 2011 04:53 AM #1
Rainmaker
316,151
Sandy Acevedo
951-290-8588 - Chino Hills, CA
RE/MAX Masters, Inland Empire Homes for Sale

Hi Jim, I hope this is true. I think this would really help. Thanks.

May 27, 2011 07:42 AM #2
Rainmaker
1,846,233
Michael J. Perry
KW Elite - Lancaster, PA
Lancaster, PA Relo Specialist

This would be amazing , but I'm not sure if it would fuel an increase in activity ??!!!

Jun 08, 2011 10:54 PM #3
Rainer
161,750
Jim Poole
Tampa, FL
Zero Down, USDA Purchase Loans, FHA 203(K) Rehab & VA Streamline Loans

Good point Michael, so far we have not seen the optimistic up-Tic we have seen in the past.

Jun 09, 2011 02:36 AM #4
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Rainer
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Jim Poole

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