Why are Mortgage Rates Changing So Often!?!
Your mortgage is most likely your largest debt you will have in your life. Securing your mortgage interest rate is one of the most important factors.
As an average consumer it is hard to study the mortgage market in these volatile times and accurately decide when a good time to lock into a new interest rate will be. Rates are changing multiple times a day.
You could practically drive yourself crazy if you try and follow some of the standard rate indicators of the past in this environment. What is the 10 year treasury doing? What is happening on the stock market? These indicators just dont apply like they used to today.
Over the past two years over 300 mortgage banks (particularly wholesale mortgage banks) have gone out of business because of a lack of liquidity or inability to sell off their loan portfolios or a host of other reasons. The ones that have weathered the storm or are weathering the storm have had to reduce their workforce dramatically to cut costs and operate leaner operations.
As mortgage rates decrease and the demand for new loans increases the banks are finding themselves in a position of overflow. They no longer have the robust back office staff that can support millions dollars of new loans every day. To control the increased volume that is slowing down their processing turn times they are pricing themselves out of the market to deter new business while they catch up.
The rate increases are causing abrupt swings in the market place as banks raise and lower their mortgage rates to try and control their production and service levels.
The best way to ensure that you are not gambling with your mortgage rate that you will have for years is to make sure you align yourself with a solid mortgage company that can collect your qualifying information upfront and watch the market for you. That way they can capitalize on the sudden drops in rates when the banks have caught up on their loan pipelines for you.
To learn more about locking mortgage rates in this in a changing mortgage marketplease start by viewing some real time mortgage rates.
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Tagged With Mortgage, mortgage banks, mortgage market, Mortgage Rates
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