Hey everyone. So we’re talking to a lot of clients who are seeing these low rates and are looking into refinancing with us. Most of our clients take our advice and jump on locking. When we recommend it, we’re watching the market, and based on economic reporting, sometimes we suggest waiting a day, and other times we recommend that they lock right away as general rule interest rates change daily, but in; today’s environment, they actually fluctuate throughout the day.
Rates have been like a whipsaw with large swings up or down based on information that you may not even be privy to because mainstream media doesn’t always report on it. The good news is that we do this for a living, and we’re mortgage professionals. So it’s our job to monitor the market in real-time. We subscribe to services that give us notifications on things like market volatility, which give us a heads up when the news is expected. And the effect that news may have on mortgage rates. Subscribing to these expensive services is one of the many things that we as; mortgage brokers do to be the best advisors possible to our clients. Being well-informed helps us to educate you. And in many cases, it makes the difference between getting a loan or not.
So at some point, rates will hit their lowest point in this cycle. Is that today, tomorrow, or wasn’t yesterday, and do we just not know it yet? A client that locks in today gets immediate savings that they can use at historically low rates. A client that waits for the extra $20 or $30 a month in savings; instead of taking the two hundred ($200), three hundred ($300) or even four hundred dollars ($400) savings today could wind up losing out completely. If we see that whipsaw market change, I just talked about it. I have seen this happen more times than I can count. In my (23) twenty-three years in this business.
We do expect at some point there’ll be a vaccination to COVID-19 or maybe even a cure, or perhaps just talk of a vaccine or maybe, some other really positive news to the economy. When that happens, we will see a lot of money flow into the stock market, and in turn, will cause money to flow out of the safety of the bond market. And as such mortgage rates will be pressured. And you will see the spike when I say spike, I mean dramatic one day, one hour, we will see the historic low rates in our rearview mirror. We will know that the bottom was in the past.
Do you think the person that locked we’ll be happy? Of course. Do you think the person that thought holding out for $30 a month in savings will be upset? Of course. The lesson here listened to your mortgage advisor. Always take the bird in the hand. If it turns out that rates continue to go lower you can always analyze another refinance in six to nine months and reap the additional benefit.
Just another tip for the week here at Amerifund. Everyone stay safe and take good care of one another.