Jason Bernabei, TriCastle Realty
DEL MAR, August 20, 2012 – Goooood Monday morning San Diego!!! After a great
weekend of waves and a great first-time out in the field with a new client, I’m
locked in and loaded up for another week in the world of Housing and Lending. For
starters, this week and the coming weeks seem to be pointing towards a lot of
uncertainty in regards to mortgage interest rate movement.
In recent weeks rates have trended upward, after steadily
falling from the Great Rate Reduction of last August 2011, when Chairman of the
Federal Reserve Ben Bernanke took the podium and changed the landscape of
business confidence in the marketplace with a single speech. Though Mr.
Bernanke vowed to do his part to keep rates historically low through 2013,
circumstances beyond his control have forced their way in.
As I’ve written about extensively in previous columns, the
meltdown of a number of European governments and financial sectors continue to
influence interest rates globally. It has meant for some improved rates at
times, and it has meant for sudden spikes in the mortgage marketplace as well.
When to lock a client’s rate has been a lot of high-stakes gambling for loan
officers, brokers, and banks across the nation.
Mortgage News Daily describes the current climate as one of
“growing
anticipation
and anxiety.” And so we look to the coming months to see if rates as low the
high 2 percentile, and low 3 percentile will still be available for those that
meet the qualifying criteria. Rates will turn upward and stay that way for
awhile at some point, and it no longer seems so certain that Mr. Bernanke’s forecasting
for historically low rates through 2013 is in the cards.
The recent trend of upward rates is more than a little disconcerting,
but it’s too early to tell if the writing is on the wall. If by September’s end
you find me lamenting “Help us Bernanke-Wan Kenobi. You’re are only hope!” then
you may have missed your chance at these historically low rates for good. For
now, you might want to look into making a move on a refi, and pre-locking
immediately thereafter! I can help!
Feel free to contact me, Jason Bernabei, if you are looking to refi, or need a purchase
loan, or are looking to buy or sell property, need a good short sale
negotiator, or if you just want to shoot the breeze on Housing. Until next
time San Diego, enjoy summer and what’s left of these rates while you still can.
Jay's Outlook:
Jason Bernabei, TriCastle Realty
