My thoughts on __%.

by

blog-author-jeffreypinkerton5

To say that I have no thoughts on the market and the current direction of mortgage rates would be misleading . . . to say that I have no prediction on the market and the direction of mortgage rates would be more accurate.  Honestly, I have no idea — and neither does anyone else.

If you were to back up six or eight months from today, I would tell you that would be crazy to pass up 5.25% fixed forever on a mortgage.  But go back just six to eight weeks, with mortgage rates were in the high 4’s (and people in the media and politics talking about rates in the low 4’s and high 3’s) and then an interest rate of 5.25% sounds  . . . just “ok.”

Even in the midst of an unprecedented mortgage market, the standard guidelines apply for mortgage rates — a quickly growing economy creates the potential for inflation; inflation eats away at the value of long-term investments (such as mortgage debts); and so, the signs of inflation (good economic news) and the fear of inflation cause mortgage rates to go up.  If you add the standard equation to the loss of profits of lenders by way of foreclosure, early payoffs, short-sales, etc, there is likely even more pressure for mortgage rates to go up.

So, the question is not, “Are you feeling lucky?”  (Although a handful of people seem to approach mortgage rate watching this way).

 pic_feelinglucky

And believe it or not, the question is not, “Do you feel like the economy will start to grow quickly sooner or later?”  The question is one that I have asked my clients for years . . .

And here it is:

“Which would make you MORE upset.  If we DID lock-in your interest rate, and mortgage rates went down?  Or we DIDN’T lock-in your interest rate, and mortgage rates went up?”

The answer to that question, should make your decision to lock or to float — along with the help of a professional mortgage consultant with a close watch on the mbs market,  trend-lines in the mbs market of resistance and support, up-coming economic data, current US Treasury policy and mbs purchasing patterns, candlestick charts and stochastic cross-overs, FOMC meeting notes and policy positions, and one who’s ultimate goal is to help you with your mortgage financing so that you will be a thrilled customer, likely to refer everyone you know.

So . . . are you working with the right mortgage professional?  Well . . . are ya?!

footer_jeffreypinkerton3

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s


%d bloggers like this: