Market Volatility

Wow, what a crazy day in the market yesterday! We had 5 "re-price" notices (a re-price is when a lender is changing mortgage rates based on market conditions) 4 of which were for the worst. At one point in time 30 year fixed rates were at 5.25% and within 2.5 hours the market made a 600 point swing and we were back to 5.75%! I say this because I have never seen a day in the market like what we witnessed yesterday. It made our job extremely difficult because the lenders were so busy taking rate locks that I was not able to lock everyone of my clients. I literally was on hold 25 minutes to lock the last of my clients loans and during my "holding" the lender re-priced and my clients were left hanging the baggage.

Now with that being said it is predicted that mortgage rates will reach that low again but only time and market conditions will tell. What does all of this mean? It means you BETTER be doing business with someone who has the knowledge, ethics, and tools available to them to best serve YOUR interest in regards to your home financing needs! Be prepared for more of the same going forward especially next week when the Fed meets again to further discuss economic planning and stimulus issues.

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