Banks have been weird about their mortgage rates over the past few weeks…and months. We all know why…..covering the old butt!

 

For the past few weeks, it was better to lock in for a longer period of time (45 days) rather than short term (15 days). I hate being pressured into locking in so far in advance, especially in this roller coaster of a market.  Hailing myself as an expert (I have an MBA- big whoop), I like to think I can carefully watch the markets and know when to grab the small window where rates drop- wow that was worth the 100k tuition bill. My clients think I have that gift and let me use my instincts. We usually “win”, but if I lose I always honor the rate I quoted. This is called playing the market and letting your clients be in a win-win situation.

 

Today however, a few of our lenders (name drop: Wells Fargo) have lowered the short term rate locks to fab levels. We don’t know why, but we grabbed them while we good. I believe it is part of the courting period for the banks and the government. The banks are telling the Fed they will play fair if only they can get some more money. The banks show how sweet they are until they get what they want and then bam, back to their old tricks.  Remind you of a few people you know?

 

Be that as it may, get it while you can.

 

Dale Siegel