Mortgage Report / Crystal Ball Anyone? by: Mario Loria

I’m not an expert when it comes to Economics, the Stock Market and the Bond Market but I’m fortunate to get updates on a regular basis which I can summarize. 

Yesterday 2/16/21 was a very tough day for Mortgage Backed Securities and lenders across the country adjusted their rates not just once but two or three times. The general consensus is that rates will most likely increase gradually in the upcoming months. Hopefully for those of us in the Real Estate and Mortgage Industry rates will stay low for a long, long time but there are many moving parts that determine what direction interest rates move in. This morning rates improved slightly from yesterday’s high. 

I think it’s important that we let customers who are reluctant to list their homes that interest rates are becoming more volatile and this is the best time to sell while the buyers are highly motivated. I remind my loan officers to lock in their borrowers as soon as possible whether they are refinancing or in escrow on a purchase. Sometimes customers are not in a rush to send in documentation and or lock and it’s very important that we let them know that they need to move quickly because of the potential volatility in the rate environment.