Why are Mortgage Rates Changing So Often!?!
Your home financing is a big commitment and big investment. You need to make sure you are happy with your loan.
In a volatile mortgage market like the one we are in right now it is hard to be an average citizen/homeowner and be able to gauge what the market is doing and when a good time would be to get into a new loan.
In this unique mortgage market those same factors that affected mortgage rates and could be used as indicators on where they were headed to not always apply anymore.
2007 and 2008 were devastating years for mortgage companies. The ones not included in the over 300 that went out of business did not come out the other end of the real estate market crisis looking like they used to. Many banks have had to drastically scale down there work force to stay afloat.
As mortgage rates decrease and the demand for new loans increases the banks are finding themselves in a position of overflow. They no longer have the robust back office staff that can support millions dollars of new loans every day. To control the increased volume that is slowing down their processing turn times they are pricing themselves out of the market to deter new business while they catch up.
The rate increases are causing abrupt swings in the market place as banks raise and lower their mortgage rates to try and control their production and service levels.
The best way to ensure that you are not gambling with your mortgage rate that you will have for years is to make sure you align yourself with a solid mortgage company that can collect your qualifying information upfront and watch the market for you. That way they can capitalize on the sudden drops in rates when the banks have caught up on their loan pipelines for you.
In a volatile mortgage market like the one we are in right now it is hard to be an average citizen/homeowner and be able to gauge what the market is doing and when a good time would be to get into a new loan.
In this unique mortgage market those same factors that affected mortgage rates and could be used as indicators on where they were headed to not always apply anymore.
2007 and 2008 were devastating years for mortgage companies. The ones not included in the over 300 that went out of business did not come out the other end of the real estate market crisis looking like they used to. Many banks have had to drastically scale down there work force to stay afloat.
As mortgage rates decrease and the demand for new loans increases the banks are finding themselves in a position of overflow. They no longer have the robust back office staff that can support millions dollars of new loans every day. To control the increased volume that is slowing down their processing turn times they are pricing themselves out of the market to deter new business while they catch up.
The rate increases are causing abrupt swings in the market place as banks raise and lower their mortgage rates to try and control their production and service levels.
The best way to ensure that you are not gambling with your mortgage rate that you will have for years is to make sure you align yourself with a solid mortgage company that can collect your qualifying information upfront and watch the market for you. That way they can capitalize on the sudden drops in rates when the banks have caught up on their loan pipelines for you.
About the Author:
Start your process by watching real time mortgage rates online. If today's rates are lower than your current mortgage rate it is time to partner with a trustworthy company to ensure you are getting a great deal.
posted by Credit Counseling at
2:07 PM
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