Headlines like this can be deceiving. When homebuyers see these news updates, they seem to believe that rates must have dropped back down to 5% or 6% at least! Right?
While mortgage rates are technically lower, they may actually be marginally lower, i.e. 7.5% to 7.25%, but it all truly depends on the day.
Explaining this to your clients could save your client time and credit score hits. And it could save you from the potential of your client bailing to a lender who you’re not familiar with because they are shopping to the ends of the earth for a 5% mortgage rate.
Industry pros claim that rates are going to remain steady and not to expect rates to get below 6% within the next year. Obviously, no one knows for sure, but based on how conservative the Fed has been over the last 18 months and how slowly inflation has been fluctuating, it makes sense.
However, bad economic news means better mortgage rates.
Recent economic reports have shown to be worse over the last couple of weeks, which is why media is posting hopeful headlines about rates.
· Continued Claims increased from 1818k to 1834k (worse)
· Consumer Sentiment dropped from 63.8 to 60.4 (worse)
· Core CPI dropped from 0.3% to 0.2% m/m (worse)
· Jobless Claims increased from 217k to 231k (worse)
If I was a betting man, I’d be willing to bet a dollar that we have finally peaked in mortgage rates and inflation. But I wouldn’t bet that dollar if it’s all that I had!
Best advice I can give to clients who ask about rates in today’s market is that while they are cooling off a bit, expecting anything below mid-upper 6’s anytime soon is going to be wishful thinking.
For those of you who have supported me in my transition to a mortgage banker from an online lender over the last year, I want to share how thankful I am to continue working with you and I sincerely appreciate the love and support that you have shown for my family and I.
If you’re wondering how to get WARM AGENT REFERRALS from some of the nations top agents whom I have personally worked with multiple times over the years, contact me to learn more about how to join this team.
Terry Roberts, USMC Veteran Sr. Mortgage Broker NMLS 397987 E Mortgage Capital, NMLS 1416824
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