Crazy time in the mortgage industry. Lenders and banks are swamped with applications and may have a hard time closing your loan before the lock expires. Some requiring 100 day locks, some no longer accepting new loans, etc. Day to day pricing is now more capacity related than tied to MBS prices or bond yields. In fact, the average lender INCREASED rates just slightly this week to slow down new applications and rate locks.
Here is a great newsletter that will help to explain the confusion about mortgage rates this week.https://housingbrief.com/article/5e62e220f40efc075062a21f/4fe094c7507eae194022246e
Mortgage rates should be much lower. Probably in the 2?s. But in many cases, banks and end investors won?t let rates drop much further. They are already experiencing expensive ?lock fallout.? That?s when borrowers bail on their locked loan applications to seek lower rates elsewhere. If lenders let rates drop too far too fast, their existing clients who have locked will bail on their applications and re-apply with another lender. So they keep rates artificially high to keep clients invested in their loan process. Additionally, many lenders and banks aren?t equipped to take on huge volumes of mortgage applications. Volumes would increase to unsustainable levels if they dropped its 30-year fixed to around 2.85% ? where rates should be.
Also investing groups aren?t exactly excited about ultra-low returns and paltry mortgage interest. Investors only make money if they can collect interest on the mortgage long-term. They don?t like it when you pay off your mortgage, either with cash or a refinance. So a falling interest rate environment works against itself, pushing rate levels up from the bottom (from banks and investors), even as the larger environment is trying to push rates down. Start your refinance application now before rates start to rise.
BBB A+
Apply online:http://visionquestlending.com/free_quote/
Tony Nguyen | NMLS#93776
Vision Quest Lending | 2860 Michelle Drive, Suite 140, Irvine, CA 92606
Direct 714-464-8042 | 877-318-0992 x6502 | Fax 866-394-9352
Email | tony@vqlending.com
Website | www.visionquestlending.com
Here is a great newsletter that will help to explain the confusion about mortgage rates this week.https://housingbrief.com/article/5e62e220f40efc075062a21f/4fe094c7507eae194022246e
Mortgage rates should be much lower. Probably in the 2?s. But in many cases, banks and end investors won?t let rates drop much further. They are already experiencing expensive ?lock fallout.? That?s when borrowers bail on their locked loan applications to seek lower rates elsewhere. If lenders let rates drop too far too fast, their existing clients who have locked will bail on their applications and re-apply with another lender. So they keep rates artificially high to keep clients invested in their loan process. Additionally, many lenders and banks aren?t equipped to take on huge volumes of mortgage applications. Volumes would increase to unsustainable levels if they dropped its 30-year fixed to around 2.85% ? where rates should be.
Also investing groups aren?t exactly excited about ultra-low returns and paltry mortgage interest. Investors only make money if they can collect interest on the mortgage long-term. They don?t like it when you pay off your mortgage, either with cash or a refinance. So a falling interest rate environment works against itself, pushing rate levels up from the bottom (from banks and investors), even as the larger environment is trying to push rates down. Start your refinance application now before rates start to rise.
BBB A+
Apply online:http://visionquestlending.com/free_quote/
Tony Nguyen | NMLS#93776
Vision Quest Lending | 2860 Michelle Drive, Suite 140, Irvine, CA 92606
Direct 714-464-8042 | 877-318-0992 x6502 | Fax 866-394-9352
Email | tony@vqlending.com
Website | www.visionquestlending.com