It ain’t for the week stomach.
What a killer week for rates, as mortgage rates continue their Elon Musk Rocket Ride to 5%. We have seen a little reprieve today, but the stair steps that I will show you in the chart below is only showing the forthcoming 5%+ rate market.
Inflation, inflation, inflation, this is all it is about, and until we see some tame inflation numbers, we will continue to see interest rates go up. The economy is just too much on fire, and next week could be another rough ride.
Next week, we have quite a bit of news coming out, but the 2 main data point to watch for is Consumer Inflation which comes out on the 14th and Producer Inflation which comes out on the 15th. Both of these report will set the markets on fire, one way or another.
One of the bond commentary I listen to show a step down approach for the bond market, and I point these out in the in the chart below. He indicates, and the trend lines are pointing to 30 year mortgages to be 5% by end of February, early March.
The consensus among bond traders and the talking heads is we are in for a long ride of interest rates heading north. We anticipation of rates being in the 6’s by early Summer, and heading towards the 7’s by Fall.
Shopping rates around.
It is a great thing when people shop among lenders to find the lowest rate, I highly encourage it because we have great rates and no junk fees. But if frost me when lender advertise lower rates, and people don’t do their research. Here is a great example of a lender advertising a rate that does not exist, this is from yesterday.
Borrower pointed this out to me and was going to cancel the loan with me, because I locked them at a 4.375%.
What they did not do is research, please always tell clients to look for the small “disclosure” button, which is always hidden:
In this case Upper right corner, and then the truth comes out, there is point buydown, origination fee, and the big one, this rate was from January 10th, which they purposely put in a funky calender format for people not to see.
FYI, my rate that day would of also been the same, with the discount, but no origination.
Moral of the story is, get a fee sheet or Loan Estimate
Sorry for the soap box, but we really need to get the word out about this.
In other news:
LoanDepot just hired the former CEO of Keller Williams to start up their Real Estate Business. This is something a little new, where as before Real Estate companies were starting up mortgage business, now Mortgage Companies are going to start up Real Estate companies.
I think this is a big mistake for them, why would anyone, outside of their agent, send a client to do a loan through LoanDepot??
Link to article Here: LoanDepot Article
Realtor Marketing Idea for the day: Video
Video, video, video, it is all about video for Realtors. Buyers and sellers are more likely to use a Realtor they find on the web if they have a personal video on their web site, and do videos on FaceBook and YouTube.
So how the heck to you get a video, easiest way is to take one on your cell phone, practice a few time, write on a dry erase board what you want to speak about, and for the love of God, don’t do it while you are driving (yes I just saw one yesterday)!
More complex, contact whoever is doing your web site and ask them to produce a video.
Here is a pretty good article from NAR on this subject: http://blog.resaas.com/articles/video-marketing-guide-for-realtors-infographic