The market has for the most part taken a nose dive the past 24-48 hours. We have seen rates on some programs go up almost a half point! There are so many varying opinions out there that it’s hard to get a handle on what could happen.
Here are some facts:
-Coronavirus is driving everything. This is no longer in dispute. The negative effects are seen in the stock market, Bonds and the MBS coupons which directly affect rates.
-Lenders are at or near capacity right now. What this means is every lender has been flooded with way more refi volume than they can handle. Because of this they are backing off on giving any gains to slow the flow of new loans coming in.
-The Fed is planning on pumping $1.5 Trillion into the financial system to combat freezes brought on by the coronavirus. This should have a positive affect across the board.
We are hoping to see rates come back down over the next week or so. But there is no guarantee. This is the most unpredictable market I have seen in my 23 years.
As you know, we have access to some of the lowest Wholesale rates in the industry. We are still hovering around all-time lows on most programs.
My best advice is if the refinance makes sense right now go ahead and allow us to lock the rate and move forward. If it doesn’t let’s wait and see what happens.
If you have any questions don’t hesitate to give us a call.