Mortgage Refinance - New Records Interest Rates

[skipetex]

just filled out the app tonight. hoping for the best with this market. thanks

[jaime1982]

I was gonna keep shopping around but I'm staying with my 2.375% refi rate. Close by the 20th of next month.

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[Tex_Cattleman]

For those who were not able to apply by this past Tuesday, this really stings. It shows what mortgage PRICING has done the last three months, Dec 17 to present. Look at this chart in the inverse when considering mortgage INTEREST RATES. (for us Aggies, stand on your head when you look at it.)



We have now given up what was gained. All we can do now is wait and see what happens. In the mortgage world, rates go down slow and up fast. With billion$ being pulled out of the stock market, it should reason that rates go down as investors search for safer places to park their money. The competition from the big banks that carry most mortgages should (in a normal time) drive rates down as they compete to get those loans. However, this is far from a normal time. The flood of refinances primarily the second half of Feb until this week has snowed under everyone in the mortgage loan world. Started with loan officers like me and then is going down hill to the big banks, appraisers, and title companies. Big banks already say they do not have the employees and resources to take more. That started the uptick. However, the bulk of the increase is just craziness.

Your friendly mortgage guy will continue to update every few days what we are seeing on rates.

In the meantime, with the unprecedented circumstances we are all facing or about to face, give thanks for the blessings in your life. God knows exactly what he's doing and does not make mistakes. Keep your family safe and pray for others. All this mortgage 'stuff' is insignificant in the big picture.

[hooligan]

dang so waiting hoping for lower didn't pay off for me I guess

[Tex_Cattleman]

dang so waiting hoping for lower didn't pay off for me I guess

Maybe in a month we proclaim, Hooligan was brilliant to wait!

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[topshot]

Supply and demand here folks. Mortgage backed bonds, liquidity, lack of people to process loans have all contributed to the rise in rates...as the loans get processed and bought out, banks cash flows free up and rates will drop again.

[ColinR]

For those who were not able to apply by this past Tuesday, this really stings. It shows what mortgage PRICING has done the last three months, Dec 17 to present. Look at this chart in the inverse when considering mortgage INTEREST RATES. (for us Aggies, stand on your head when you look at it.)

[ATTACH]995415[/ATTACH]

We have now given up what was gained. All we can do now is wait and see what happens. In the mortgage world, rates go down slow and up fast. With billion$ being pulled out of the stock market, it should reason that rates go down as investors search for safer places to park their money. The competition from the big banks that carry most mortgages should (in a normal time) drive rates down as they compete to get those loans. However, this is far from a normal time. The flood of refinances primarily the second half of Feb until this week has snowed under everyone in the mortgage loan world. Started with loan officers like me and then is going down hill to the big banks, appraisers, and title companies. Big banks already say they do not have the employees and resources to take more. That started the uptick. However, the bulk of the increase is just craziness.

Your friendly mortgage guy will continue to update every few days what we are seeing on rates.

In the meantime, with the unprecedented circumstances we are all facing or about to face, give thanks for the blessings in your life. God knows exactly what he's doing and does not make mistakes. Keep your family safe and pray for others. All this mortgage 'stuff' is insignificant in the big picture.

Wow, so glad you locked me in when you did. Now if we could just get the dang appraiser to call and schedule/ complete the appraisal we’d be rolling.

[Soggy Bottom]

The attachment shows rates still falling possibly going lower than back in December if I'm looking at it right?

[Tex_Cattleman]

The attachment shows rates still falling possibly going lower than back in December if I'm looking at it right?

Opposite. Look in my post above the chart. It explains that the chart reflects the cost of a mortgage (to a bank, not a customer). This is the way lenders look at a loan. The inverse of that chart tells you what mortgage interest rates were available to a customer. Also, the graph is not a prediction, it's a reflection of fact through the middle of last week.

[drop dead fred]

Well dang! My wife doesn’t get her FT status for another little over 30+ days... oh well like you said god doesn’t make mistakes [emoji1374]


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[drop dead fred]

What’s this new rate cut impact?


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[Chad C]

The fed is not tied to mortgage rates.


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[Burnadell]

As Chad said, the Fed Funds Rate does not "directly" affect long term mortgage rates. Those rates can be somewhat indirectly affected by the Fed Funds rate, but long term rates are based on the prospects for inflation, future rate estimates, demand, supply, competition, and a whole lot of more intangible predictions, etc.

The Fed Funds Rate is a short-term rate that banks borrow from one another through their reserves held at the Fed. Banks must maintain a certain level of reserves on deposit at the Fed, based on a % of their customer' deposits in their banks. They must be tallied daily, so banks who are short reserves will borrow overnight from banks who have excess reserves.

The Fed Funds Rate is really just a symbolic benchmark because (I believe) the banks can set their own rates to borrow from each other...but they usually charge/pay the benchmark set by the Fed.

Banks, and other lenders, deposit gatherers, etc. will then set their own deposit/lending rates based on the benchmark. Competition and whether or not the banks need more deposits or loans will create the differential in rates at various institutions. Long term rates are a different matter.

[BigRed323]

Hey Tex. I had a sent a pm in the beginning of January (01/09) and never heard a response back. This was when you were offering a look over without an actual application. Definitely interested in it still.

[No-Tox]

I've been buried with my company (telemedicine service) getting prepared for the Coronavirus hit here in the USA these past 2 weeks so I didn't get to finish pushing all the docs over to Trey. Rates still good? What are they now?