Rates:
Overall, rates are exceptionally low. I mentioned before that the single biggest factor to mortgage rates is the 10 year treasury. Right now, we are at a yield of .767%, I think we dipped to .66% as the now all time low. Previous to this the all time low was around 1.3% (I can't remember exactly). What we are seeing right now is that mortgage rates are not following the 10 year treasury for two big reasons. This is pretty much across the board in both retail and wholesale, the typical spread of what you expect from retail and wholesale remains. Those reasons are the following.
1) Every lender is overloaded. Pipelines are full. People are working OT. Turn times are increasing. Many lenders will use the rates as a way to ensure quality control on their pipelines and take a larger margin anyways.
2) MBS are not being bought up. To encourage buyers a larger premium needs to be offered versus market conditions would otherwise allow.
What does this mean? I am advising my clients at this point to apply (if they have not yet) and then float. Floating means you do not lock in the rate with the application. Why? I expect the downward pressure of the treasury yield to win out at some point. We should see some volatile movement on rates. If you are sitting on the fence and then rates drop where you want to apply, you may end up missing the boat. As I mentioned before, everyone is behind... an application and submission which use to take me 1-2 days is now taking 3-4 days. Further, if you have your application in and the 'work' on the loan is done then you can lock in for a shorter lock (which saves money) as well. Apply, get your loan ready, wait and then be ready to lock in is what I am telling my clients to do.
I am still happy to connect any FBG to a broker or if I can help, help them directly myself.
At this point, there are very few mortgage holders out there that shouldn't at least look at their options. Your friends and family should be too. Feel free to give out my info to them if they want assistance from me or me to refer to a good broker. If myself or my brokerage isn't licensed in their state (IL, IN, WI, CA, WA, FL, and VA), I will refer them to someone good:
Chad Masters
NMLS 960505
Market Place Mortgage Corp
(708) 400-1799
cmasters@marketplacemortgage.com
Alternatively, an online resource for them to search a www.FindAMortgageBroker.com if they are more comfortable with that. It will show brokers within a 25 mile radius.