Mortgage Rates didn’t move much compared to latest levels, but that’s the only way to view them as being ‘unchanged.’ Even so, as is typical, news media is awash in the mortgage rate headlines resulting from standard-issue repackaging of Freddie Mac’s weekly rate report (Freddie puts out the numbers and hundreds of journalists write a story based on those numbers). At the end of the day, it’s only one piece of data that has been redistributed numerous times.
Normally that’s not a problem. If the headlines reflect reality, then it doesn’t much matter if hundreds of stories are written about it. But occasionally the underlying data lags reality due to Freddie’s methodology. That quickly becomes a problem on days like today when rates are, in fact, at their highest levels in more than 3 months, and SIGNIFICANTLY higher than they were a week ago today. In fact, there are few other weeks in recent memory that have seen rates move higher at a quicker pace. The average lender is quoting rates that are at least an eighth of a point higher today compared to last Thursday.
Loan Originator Perspective
Tomorrow’s almighty jobs report may be the data point that helps rates fall back into the “comfort zone” range, or perhaps the straw that breaks the camel’s back, so to speak. Either way, floating is riskier than normal at the moment, especially if you’re hoping to close within 2-3 weeks. We are in the midst of an uptrend in rates. It can get much worse before it gets better. Defense is the only play here. Loans closing inside of 45 days should consider locking, even though we may bounce from this technical point tomorrow. –Gus Floropoulos, VP, The Federal Savings Bank
Superior Mortgage Lending is a broker by design. We have lent our own money as a mortgage banker and brokered in the past and have made the decision to stay with being a broker because of the flexibility we have with programs. We are not captured with certain credit scores. Also, as a mortgage broker we can offer better rates and no fees. At Superior our ultimate goal is to create lasting relationships with our clients so that we may continue providing excellent service for many years to come. We offer a wide variety of Residential and Commercial Loans. Superior Mortgage Lending is your premiere team of mortgage professionals in Las Vegas.
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