Banking insecurity leads to lower rates

Everyone by now has seen the media and the instability of some banks both in the US as well as Europe. While this can have an impact on our financial markets here, the little known consequence was the easing of mortgage rates this week. While rates remain well within a very normal level, compared to the rates just last year, they seem high. This week has seen rates at 6.2% with no points, allowing many lenders to lock clients in to a lower rate than they were prepared for just last week when we saw 7%.

What does this mean for the real estate client and their agents, who are trying to navigate a market that has low inventory and rates changing from week to week? Agents have to be in touch with lenders and know what products they are offering, so they can pass this information on to their clients as expediently as possible when they find a house they like. Lock and shop programs are becoming more available as well as 2/1 buy downs still being something sellers are offering to help with the sale. These programs coupled with a lender that can do a streamlined, no lender fee, refinance make buying a house at current rates very manageable for even the first time home buyers.

Buyers have to do their homework when choosing an agent and the lender in order to make sure they are getting people that spend their days preparing for their clients and being able to answer the hard questions when asked. Staying on top of the market changes, the rate changes and the programs lenders are offering, are one of the things I pride myself on as a busy agent. Making sure I’m advising my clients on changes, so they can take advantage of the most current changes, is a must for me. So make sure you are asking me about these things and I will make sure you are just as up to date as I am.