There has been a lot of talk in the media about mortgages since the Fed announced that they are continuing their scheme of buying mortgage bonds and long term treasury debt. The Fed is determined to keep the rates down this year to help stabilize the housing market to make homes affordable whether borrowers are refinancing or purchasing. With all of the government intervention, why aren’t rates lower? Why is everyone talking about loan rates at 4.5% when the Freddie Mac weekly survey has rates at 4.98%? We saw some some great rate sheets after the FOMC meeting concluded the other day. By the next morning, rates bumped up a bit. Lenders are trying to control the flow of business by raising and lowering rates. Most lenders have not increased their staffs even with the increase in business. When they get inundated with rate lock requests, they bump up rates to slow the flow as if it was a faucet. Because lenders only have so much capacity, raising rates a bit slows down the flow of volume.

Rates are not one-sized fits-all. Amongst the factors influencing rates include credit scores, loan-to-value ratios, taking additional cash-out when refinancing and even the size of the loan. Are you willing to pay points (origination fees and discount points)? If so, you can expect a better rate! If you’re calling a loan officer and asking ”what’s your rate?”, expect your loan officer to quiz you on your qualifications. Don’t expect a quick response.  A professional will ask the right questions and even pull a credit report to get an actual read on your qualifications.

I have been originating mortgages in Arizona since 1994. Sunstreet Mortgage, LLC offers conventional, FHA and VA loans. Call me at (520) 977-3300 for all of your mortgage related questions.

Related posts:

1. What’s up with mortgage rates?   The Arizona Daily Star published a good article last...
2. Which Way Will Mortgage Rates Go? Rate predictions are as simple as weather predictions in my...

Related posts brought to you by Yet Another Related Posts Plugin.