Yesterday was an incredible day in the mortgage industry. We saw the opening rates at 4.375% for some scenarios first thing in the morning. Which after the Fed meeting and lowering the Fed Fund rate is incredible all in itself. In normal economic times, historically, mortgage rates increase after a Fed Cut and then we recover a few days to weeks later. However, we all know that we are not in normal economic times are we?
Lenders web sites crashed, Fax lines were busy all morning long. By the time the dust settled, we ended the day at 4.75-4.875% depending on scenarios. I think that lenders had to increase rates yesterday to curb the volume they were receiving. They knew they could not keep up. With the surge in volume, turn times will also increase. We will most likely be looking at 45day closes now with the sheer increase.
Be patient and in contact, rates will calm after the storm. I will work hard to get existing loans renegotiated or taken to a new lender to take advantage of the better interest rates. My clients financial well being is the most important to me!
Comments(2)