First and foremost, the Fed is the only major buyer of mortgage backed securities, and they are essentially printing money to do so. This is arousing inflation fears that can push up rates, as we have mentioned before. In addition, until other major buyers of mortgage backed securities step up, any announcement by the Fed, that they might back off from their buying activities, will send rates through the roof.
Our suggestion: Lock soon before rates go up. And, lock for over 30 days, as lenders are once again buried in loan volume.
We have one lender offering the same pricing for 60 day locks that they do for 30 day locks right now to ensure enough time to fund loans they underwrite before their locks expired. Fortunately, all lenders give preference to purchases over refinancing, but we still suggest that slightly longer escrows of 45 days might be advisable, at least in the short run. We do have numerous lenders who can help us close much faster (in as little as 15 days if necessary) but they often do not have the most competitive rates.
We are currently working on a closer partnership with a major bank to both ensure constant access to the absolute lowest rates and closing times of under 15 days, no matter what market conditions look like. We will certainly let everyone know when this is available.
Call Jay Voorhees at (925) 855-4491
Real Estate Broker, CA Bureau of Real Estate, BRE# 01524255, NMLS# 335646