By Douglas Katz
From Freddie Mac:
The uncertainty and volatility in financial markets is heavily impacting mortgage rates. Our survey indicates that the range of weekly rate quotes for the 30-year fixed-rate mortgage has more than doubled over the last year. This means that for the typical mortgage amount, a borrower who locked-in at the higher end of the range would pay several hundred dollars more than a borrower who locked-in at the lower end of the range. The large dispersion in rates means it has become even more important for homebuyers to shop around with different lenders.
Takeaways and Commentary
- Rates are trending up and any buyer should be very vigilant on locking. There will be very enticing dips that will represent a siren’s call to wait for another dip. The problem is that they are unpredictable and less common. Don’t gamble with a house payment.
- Stress test your pre-approval both for approval AND your personal budget. You do not want surprises.
- Rents are actually receding a bit but we have a long way to go in that market for normalcy and affordability.
- The hurricane from this week will likely further strain rental and purchase inventory in affected states. This was already a huge problem, so more to come with this, but it will not likely be good news.
- The financial markets are continuing to erode which aside from impacting rates is affecting the financial confidence of many families. The wealth factor is waning leading more families to stay put and not sell, especially if they have a good rate.
- Divorcing couples should definitely be evaluating options and agreements with a rate ABOVE current market and they need to be attuned to values, which are also slowing. I do not say dropping because in most areas appreciation is still beating historical averages, but not to the degree that they were previously and this could, and likely will, worsen with even lower values.
I always end with a reminder that we have discounts available for veterans, first responders and law enforcement. Make sure that you check out the section of the page covering our commitment to those who served with discounted mediation services. My lending partner also offers a discount as well, so if your buying or refinancing check it out