Interest Rates Are Up
In the last 3 working days, interest rates have climbed over 1/4 of a percent. This is typical for the mortgage industry. Business moves to a slow volume and most mortgage companies and mortgage banks encourage their employees to take vacation time now. So why not raise rates? Usually their is a downward correction in early January. Each year has its own market factors that can cause exceptions. This years turmoil in the banking side is yet to show an upturn, so no one knows what that will bring.
My suggestion is to lock your loan in early January if you are in the process. Not being locked is risky in normal markets, even more so in this one. I will make commentary here on rates if they start to bounce around.
You may not have picked up on the fact that Kathleen and I own Homes And Loans, a mortgage company. Although I have personally written over 1000 loans in my career we refer our loans to either Rob Tamaela who is local, or to one of our branches. I believe you should only give your loan to a lender that is full time and on top of the market, and with all the real estate and writing we do, I just wouldn’t hire me now as a loan officer and you shouldn’t either.
However, we know loans, and that helps our clients a ton. We pared our mortgage company down from 100 loan officers, to only 5, these 5 are fabulous people and professionals.
December 17th, 2007 at 3:48 pm
What would you recommend doing if my Condo at Vista Park Ashford won’t be done until Summer of 2008?
December 17th, 2007 at 5:53 pm
Thanks for asking. There really isn’t much you can do. To buy a rate now for then would be too costly.
My guess you are going to be fine. The rates today would be much lower in normal times. Instead of going down with the 10 year bond banks are recapturing some of their losses by not reducing.
Also, as we get closer to election day, the rates typically tend to go down. Don’t ask me why, but it is historic.