Wild Rates!

Posted on December 4, 2009

If you have watched our daily rates on our site lately you will notice that we have experienced some wild and crazy swings lately!  We have seen virtually all of our programs rates drop into the high 4% range (for those that can qualify) only to watch them shoot back to the low 5% range the last 3 days.  Don't get me wrong, low 5's are amazing rates, I just wanted to point this out to rate shoppers out there that will no doubt be frustrated.  This doesn't mean rates won't get back to the previous lows, but if they do history tells us that you better act fast.  When pricing gets to those levels, traders of MBS (which is what dictates mortgage rates) start profit taking and rates rise.  So if you are shopping rates right now, make sure you and your loan officer are on the same page so that your LO is well aware of your expectation and your risk tolerance.  It is simply not worth getting too greedy!  While shopping around is encouraged you don't have a bunch of time to do it.  I doesn't take very long to pre-qualify you and quote you a rate so don't sit around and wait for 2-3 days on a lender.  Getting quotes on different days in this market isn't doing yourself much justice because a rate is typically only good for 24 hrs.  In some cases it could be even less if mid-day reprices are issued.  I hope this quick update makes sense to you if you were wondering why our rates have been changing each day.  As always, never just take our posted rates as your quote.  Contact a loan officer to get YOUR specific quote.  This way you know for sure.  It is always possible that our rates have not been updated and your rate could be better than the posted rate in some instances.  Lastly, the rates posted on our site are Current Mortgage Rates at the time they are posted for a given scenario.  Your scenario will most likely be different, therefore obtaining a customized rate quote is always best!

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Flat Branch Home Loans, Inc.