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They Said It Better Than Me

By
Mortgage and Lending with Mortgages in AZ, CA, CO, DE, FL, GA, IN, MD, MN, MT, NC, NJ, NV, OK, OR, PA, SC, SD, TN, TX, UT, VA, WI NMLS #138061 MMCD #1141

They Said It Better Than Me

 

 

     I try to keep folks in the loop all the time about what's happening in the mortgage marketplace, specifically when it comes to the question on everyone's mind - "where are rates headed?".

Where are rates headed

 

     It's a tough question to tackle, because most of the media outlets that offer their opinions are nothing more than short-sighted, closed-minded guesstimates.  While they may offer some relevant data, they tend to ignore other, equally important information, so it's tough to figure out "who to believe".

 

 

     My thoughts on where the markets are headed has been a consistent "nobody knows", and while this seems like an easy cop-out that allows me to be neither right nor wrong, it's actually a bold statement - the Fed, that financial body that holds almost the entire global economy in their hands?  I don't think they have a clue what's going to happen.  Hedge fund managers handling billions of dollars in investments?  I'm not sure they know what they're doing right now, either.  That's pretty bold coming from little ole me, but there are so many moving parts to the global economy, that regardless of what one entity does, they cannot predict how other countries, national banks, and governments will react.  Today, when visiting the Mortgage News Daily website (yes...I am an industry nerd), I read the following paragraph that encapsules exactly my opinion, but they say it far more eloquently than I have, so I thought it important to share:

 

 

"It's a highly uncertain time for global financial markets.  On the one hand, some believe we're in the midst of a race among world central banks to devalue currencies and lower interest rates.  Others believe that the global economy is turning a corner and rates will grind higher.  That had been creating a lot of volatility, which made for uncertain fluctuations from day to day.  But those periods of volatility have been interspersed by utter indecision where rates are effectively drifting sideways with no conviction and no desire to get off the fence.  We have yet to see a truly big/scary move higher after 2015's first (and so far "only") big push toward higher rates that ended at the beginning of March.  We've been sideways right in between the highs and lows ever since."

- from Mortgage News Daily

 

 

     I think this is important because that above quote is something that should be shouted from the rooftops, to anyone and everyone that would like to buy a home over the next year or 2 (or has one to sell).  There's no room to sit on the fence.  When we say "rates could be higher tomorrow" we are not scaring you into a lock - we're telling you the only reality in today's marketplace is uncertainty.  My personal opinion is WHO CARES if you can get a lower rate.  3.75% VS the potential for a 3.25%?  Who cares? Either way you're catching mortgage debt at a historic low.  What people should care about is the difference between 3.75% and 5.5%.  When rates go up, they go up quickly, and if that trend takes hold, people will be kicking themselves for not locking in a 3.something.  Short term, I think there's room for rates to move lower, but if your rate starts with a 3, there's really no room for complaint or hesitation.  Get your loan done, and be happy that you could get it while it lasted.

Posted by

John Meussner
NMLS ID #138061

It's more than a house - it's home.  So we offer a wide range of mortgage products at competitive prices to help our clients achieve financial security at home.  While we get great feedback on our prices and products, many clients say their favorite part of working with John Meussner & MasonMac is the level of service provided along the way.

Purchase money loans, Refinance, Renovation, Jumbo, FHA, VA, USDA, nonQM, HELOCs, and more

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Comments (36)

Mike Cooper, Broker VA,WV
Cornerstone Business Group Inc - Winchester, VA
Your Neighborhood Real Estate Sales Pro

Well said, John. Those who sit back waiting for that super-low rate don't realize that today is that super-low rate. Grab it.

Apr 30, 2015 09:41 PM
Debbie Reynolds, C21 Platinum Properties
Platinum Properties- (931)771-9070 - Clarksville, TN
The Dedicated Clarksville TN Realtor-(931)320-6730

I think some of that is just talk. Right now is a great time to buy and if the time isn't right it isn't right. Take your chances on later.

Apr 30, 2015 11:38 PM
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Anyone in this business should always have something to say about it.

Apr 30, 2015 11:42 PM
Sharon Parisi
United Real Estate Dallas - Dallas, TX
Dallas Homes

Now is a great time to purchase a home with historically low interest rates. Volatility may be here to stay with all the global issues. It's anew world. I think we must learn to live with uncertainty and do what makes sense for us as individuals.

May 01, 2015 03:14 AM
Gene Riemenschneider
Home Point Real Estate - Brentwood, CA
Turning Houses into Homes

Nothing like certainty.  I tell people I have some thoughts, but there are too many variables to make any sure fire predictions.

May 01, 2015 03:41 AM
Claude Labbe
RLAH / @properties - Washington, DC
Realty for Your Busy Life

It does seem the pros can't predict the future.

Take the 3 with gratitude and take action now.

May 01, 2015 05:00 AM
Anna "Banana" Kruchten
HomeSmart Real Estate - Phoenix, AZ
602-380-4886

Up Up and Away - rates will go back up. They are so low know....crazy low to one who thought anything under 10% was good in the late 80's!

May 01, 2015 08:24 AM
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

I think it's a terrific time, if buyers are truly serious about buying and are qualified, to take advantage of the rates. Yep, times are uncertain by it could be a risky proposition to play the waiting game. And with prices rising in some markets it could be a double whammy.

May 01, 2015 09:08 AM
Kimo Jarrett
Cyber Properties - Huntington Beach, CA
Pro Lifestyle Solutions

Even if rates went up say 50bp, MLO's will still say rates are low and shout out to buyers and homeowners to buy or refinance today before rates increase again. 

May 01, 2015 10:29 AM
John Meussner
Mortgages in AZ, CA, CO, DE, FL, GA, IN, MD, MN, MT, NC, NJ, NV, OK, OR, PA, SC, SD, TN, TX, UT, VA, WI - Fair Oaks, CA
#MortgageMadeEasy Fair Oaks, CA 484-680-4852

Thanks for all of the comments folks, the past few years have spoiled us all, and though I hope the trend continues, it can't last forever.

 

Jeff Dowler CRS I do fear that double whammy - if prices go up  much more and rates jump substantially, buyers could disappear rather quickly, which would be a very bad thing for the marketplace.

 

Kimo Jarrett MLO's should be shouting to spread the word - when I started in the industry, 6.25% was a tremendous rate....we've never been at current levels.  I'm now telling folks I helped in 2012 and 2013 that they're in a perfect loan, and the only benefit could come from term reductions.  Eventually, we'll see rates approach the mid-4's and 5's again, only a matter of time.  Those who get in now will save a ton over the years.

May 01, 2015 10:55 AM
Tammy Adams ~ Realtor / Podcaster
Maricopa Real Estate Co - Maricopa, AZ
A Maricopa Agent who Works, Lives & Loves Maricopa

You are right. No one really knows but speculates. It was just a year ago some folks said we would be at 5%.  I just tell people now is a great time, not worth the risk. 

May 01, 2015 02:36 PM
Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

John Meussner its one of those question we real estate agents get - 'how's the market' and learned to answer 'unbelievable!'. Of course, the answer is similar to 'nobody knows' - still that curiosity strikes the conversation - and helps our business.

And yes, 'who cares'? cannot be the approach for anyone - specially that 3.x gets converted to 5.x!

May 01, 2015 02:50 PM
Marte Cliff
Marte Cliff Copywriting - Priest River, ID
Your real estate writer

I started selling real estate in the days when many of my sellers were paying on mortgages with rates in the mid to high teens. At that point, banks were still charging 11 or 12% - unless you wanted to pay points.

When we got a loan at 10% with no points I was dancing for joy. 

3%? - 4% ? - grab it before it disappears! 

May 02, 2015 06:12 AM
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate Services

John, And when the rates to go up we will see another shift in these hot seller markets we are experiencing across the nation.

May 02, 2015 07:30 AM
Fred Griffin Florida Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

In 1987, I was at a convention where Arthur Laffer (President Reagan's economist) talked about rates "Going back under 10%".   The audience laughed him to scorn.

Yet here we are today at 4%, and people think rates are going up, or are too high.

May 02, 2015 02:32 PM
Ernest Villafranca
Better Homes and Gardens Real Estate - Oakland, CA
3923 Grand Ave. Oakland CA, 510-418-9443

Where are the rates headed? They're staying about the same, flat.

It's a question like, "How's the weather?" It's just a question, so give them your best guess.

Don't agree with me? Fine. Do agree with me? Fine.

If I were to answer them:

"It's a highly uncertain time for global financial markets..We've been sideways right in between the highs and lows lows ever since."

They'll think I'm talking in Chinese.

If they really want to know, tell them to Google it.

 

May 03, 2015 05:44 AM
Woody Edwards
First Choice Realty, Inc - Chesterfield, VA
A Realtor® Who Answers His Phone!

For those of us old enough to remember the 80's...... 10% seems low!

May 03, 2015 10:49 PM
Michael Jacobs
Pasadena, CA
Pasadena And Southern California 818.516.4393

Hi John -- to think that interest rates are three something remains one of the most amazing things about real estate today.   As Woody Edwards commented -- I certainly remember my first home and the interest rates --- how much I could have saved per month then if only they were at 3 or 4 or even 5.....

May 07, 2015 04:16 PM
Dale Taylor
Re/Max 10 New Lenox Illinois http://dtaylor.remax.com - Frankfort, IL
Realtor = Chicago Illinois Homes Townhomes Condos

When I tell them it depends on your credit rating, it usually shuts down any further questions.  I also tell them to talk to a Loan Officer I trust.  I also lead them to thinking about getting pre-approved.

May 12, 2015 10:16 AM
Winston Heverly
Coldwell Banker Access Realty - South Macon, GA
GRI, ABR, SFR, CDPE, CIAS, PA

What an informative post, I'm glad I came across it among the archives. Thanks for sharing.

May 02, 2016 01:27 PM