Because mortgage rates are at all-time lows, more and more consumers (not as many as last year) are coming down off their fences and applying for a refinance. This week the Refinance Index hit its highest mark since the week ending May 15, 2009. Refinance demand is driving activity in the mortgage market and lenders are operating near full-capacity. When this happens, lenders generally let loan pricing worsen to control the pace of new loan production and protect their pipeline from fallout risk. This is playing out right now in the primary mortgage market AT THE LARGE RETAIL LENDERS SPECIFICALLY. Besides potentially higher borrowing costs, consumers and loan officers should also notice longer "turn times" at lenders, which is basically the amount of time it takes to go from application to closing.
What does this mean to you, you need to apply with a Correspondent Lender. This is a Lender that offers many different banks. So if one bank is “Busy” and they artificially raise rates, we can place you with another lender so that you can obtain that low mortgage rate.
For more information on market conditions and where rates are going, feel free to email me anytime.
Bill Nickerson
179 Great Road, Acton MA 01720
978.264.4803 (o) 978.273.3227 (c)
Providing Mortgages Since 1991
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