Hi everyone. What a week in the mortgage industry? As you’ve heard, the ten-year T bill is at an all-time low. And the media is boasting about half a percentage point cuts to interest rates. I want you to understand some important things about this. So I’m going to give you the real four, one, one (411) from inside the industry. A significant reduction in the (10) ten-year treasury rate does not mean that interest rates across the board are going to go down in that exact same amount. Our industry is seeing unprecedented volume. Lenders know this. And they’re already hedging their rates a little bit, increasing them slightly. Just a hedge against volume so that they can take their service levels in count. And speaking of service levels, we need to prepare for things to take a little longer than they usually do. Right now, refinances are closing in three to four weeks.
Pretty soon, that’s going to be (45 ) forty-five days could become (60) sixty days could even become (90) ninety days if production continues at this pace. The worst thing you can do is wait. Yes, we anticipate rates will stay low for some time, and we may see some future market improvements, but probably not for a little while. Think of the money you could be saving. In the meantime, if you wait for the perfect time to refinance, let’s say(6) six months down the line, you decided it’s time to lock-in. And by that time, lenders are at (90 ) ninety days post refinance. Now we’re talking about (9) nine months before you’ve got a lower interest rate. All of the time, you’ve been paying a higher mortgage payment for no reason at all. The time to save money now, I can assure you as a mortgage broker. It is my job to know all of my client’s loan terms and keep a rate watch for them all. If I see a significant market improvement, you will hear from me. And even if we’ve just refinanced, I can assure you six to twelve (6-12) months down the line. If there is significant market improvement, we will finance you again? And in the meantime, you will have saved hundreds or thousands of dollars in paying a lower interest rate. So please don’t wait. The time to save money is now.
I hope this has been helpful, and I hope you all have a fantastic week.