Rates would actually be a bit higher but for supply and demand. There is a strong market for mortgage backed securities (MBS), and as rates climb the volume of mortgages decreases. As volume decreases, demand starts to exceed supply so the price of MBS goes up, and this keeps rates lower than they otherwise would be.
Hopefully that makes sense.
Many Realtors believe that they need to refer their buyers to more than one lender to avoid “steering” issues.
But, as long as Realtors never receive any type of compensation for their referrals, there is no steering risk, according to our very seasoned compliance attorney.
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