Wow! What an interesting time in the lending world. The first two weeks of the year have been incredibly busy. Rates are approaching their all time lows and yet with the economic data and the Fed's puchasing mortgage backed securities (MBS), rates should even be lower.
There is much discussion and theories among analysts that the reason rates are not lower are possibly two fold. One, lenders are extremely busy and they need to slow the volume down to be able to beef up their staff to handle the volume.
Second, the spread between what rates should be and what they are could just be good old fashioned greed and collusion. Lenders could be holding on to the fact that they have a lot of lost ground to make up from the losses they have taken last year. Lenders want the existing loans that they have logged on to close so as to not lose them to other lenders or to have to renegotiate rates which costs them additional money.
Keeping in contact is important. Call or email with any questions to see if now is the right time for you to refinance. karen@landmarkmortgage.com
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