Mortgage Rates

I came across a funny article and just had to laugh at it.  It's title: "Mortgage Rates Rise Despite Fed Intent".  What made me laugh was the comment that rates "jumped" up in the latest week 10 basis points from a national average from 3.52% to 3.62%.

I mean this is hysterical; we're seeing sub 4% interest rates and it's crazy busy in this business right now and a fraction of a percent raise is considered a "jump".  This kind of talk is just nonsense.  The problem is that rates have been so low for so long that people are just immune to it like they are to advertising messages.  Ever notice how many messages are thrown into our face everyday through several media modalities and outlets? You have some that catch you eye every now and then but for the most part, we ignore them.

Same philosophy here; people are immune to the low rate environment but a 10 basis point increase is no where near a jump.  To give you a perspective on how much of an increase that is; 1 basis point is 1/100th of a percent.  So we're talking 10/100ths of a percent increase in rate.  On $165,000 loan you're talking $9 a month.

That's not exactly breaking the bank here folks.  The article you can find here.. I don't care what they say, and of course I could be wrong, but artificial low rates are here to stay.  They can't lower them.  I think the FED has done so much for so long; they're all in now baby...We'll be riding this wave for a while.

If you're in the market to buy or refinance it a good time but keep in mind that lenders are slammed right now and loans are taking longer to close and documentation requirements are still heavy so make sure you see both of my posts on Today's Mortgage Environment and Mortgage Application Tips...

These will help get your mindset right, explain a little bit about what's been transpiring on the back end and how to be full prepared at application to help improve the processing, underwriting, and closing of your loan.

D...out..