How to Track Mortgage Rates
Shopping for a mortgage rate is like buying a new pet. It is something you will have for years so you want to make sure you are happy with it.
In a volatile mortgage market like the one we are in right now it is hard to be an average citizen/homeowner and be able to gauge what the market is doing and when a good time would be to get into a new loan.
The first thing you need to understand is that what is causing the rates to go up and down right now with the major banks may have nothing to do with the stock market or treasury yields or any of the other typical indicators that we can look at to try and follow the trends of mortgage rates.
More than 300 mortgage banks have gone out of business during this real estate and economic crisis in the last two years. The one common thread for the ones that are still around is that they have been forced to reduce their staff to skeleton versions of what they once were to try and weather the storm.
As mortgage rates decrease and the demand for new loans increases the banks are finding themselves in a position of overflow. They no longer have the robust back office staff that can support millions dollars of new loans every day. To control the increased volume that is slowing down their processing turn times they are pricing themselves out of the market to deter new business while they catch up.
The rate increases are causing abrupt swings in the market place as banks raise and lower their mortgage rates to try and control their production and service levels.
To make sure you are getting a rate that work for you find a mortgage company that you can review your goals with and submit the required information to get you qualified and let them watch for the sudden market drops for you. If they have your information upfront they will not have to miss opportunities to lock a great loan because they are waiting for more information.
In a volatile mortgage market like the one we are in right now it is hard to be an average citizen/homeowner and be able to gauge what the market is doing and when a good time would be to get into a new loan.
The first thing you need to understand is that what is causing the rates to go up and down right now with the major banks may have nothing to do with the stock market or treasury yields or any of the other typical indicators that we can look at to try and follow the trends of mortgage rates.
More than 300 mortgage banks have gone out of business during this real estate and economic crisis in the last two years. The one common thread for the ones that are still around is that they have been forced to reduce their staff to skeleton versions of what they once were to try and weather the storm.
As mortgage rates decrease and the demand for new loans increases the banks are finding themselves in a position of overflow. They no longer have the robust back office staff that can support millions dollars of new loans every day. To control the increased volume that is slowing down their processing turn times they are pricing themselves out of the market to deter new business while they catch up.
The rate increases are causing abrupt swings in the market place as banks raise and lower their mortgage rates to try and control their production and service levels.
To make sure you are getting a rate that work for you find a mortgage company that you can review your goals with and submit the required information to get you qualified and let them watch for the sudden market drops for you. If they have your information upfront they will not have to miss opportunities to lock a great loan because they are waiting for more information.
About the Author:
Start your process by watching real time mortgage rates online. If your current rate is higher than today's rateit is time to partner with a trustworthy company to ensure you are getting a great deal.
posted by Credit Counseling at
11:13 PM
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