What is the interest rate going to be? This seems to be the million dollar question, and it is very hard, I would say impossible to predict on any given day where the market is going to be - just when you think you know the direction its going to head a major economic announcement or a not so major economic announcement and feelings of emotion, sometimes greed, sometimes fear grip the market and sentiment will begin to drive the market's direction.
We have had some ups and downs in mortgage rates over the last quarter, its been kind of a roller coaster of a ride we have all been on with at least a few weeks of long hours as the market and clients both react. Spring is here and that is always great and the activity we are seeing in our market is positive and very busy.
We are also in a different mortgage market than we have ever been in with more factors going into the calculation of the interest rate for a client then ever before, not only do we have tiered pricing based on credit score but we also have the following factors coming into play-
Loan to Value - the ratio of the loan amount to the homes value and/or purchase price
types of Mortgage insurance available
number of units in the property being financed
loan amount - is the loan above or below 100k
lock period - 30 day lock 45 day lock 60 day lock or greater
All of these factors have to be considered now in pricing, basically instead of a blanket one size fits all interest rate, the buyers of secondary market loans are now having each loan rate tailored to theh customers and the transactions profile.
I wanted to make sure each of you knew this because there are times when realtors get to hear a rate at the closing table and just because it seems higher or maybe lower than the norm there may be a very good reason why.
Should you have any questions about rate, mortgages, or changes in the mortgage market please feel free to contact me by email or phone.
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