Here is one observation. At most of the ACC parks I have been to, there always seems to be a notable number of older folks or retirees watching college baseball. It appears that whether my kid is playing or not, there is a good chance I will still be watching baseball once he is done.
A Quick Note
Before we chat about rates, I wanted to share a quick story from this past week.
I had a conversation with a client buying new construction. I know the “free closing cost credit” can be enticing, especially when it is $20,000 or another large number. Here is what is not free. Poor communication and poor service.
I cannot tell you exactly what expert advice and solid communication are worth to you or your clients, but for most of my clients it is worth something. This particular client went under contract around February 18 with a closing scheduled for the end of March. The initial loan estimate and rate details were sent that day but went to spam, and there was no follow-up.
When he finally locked his rate last week, it was more than 0.25 percent higher with roughly 0.5 percent higher fees because rates had moved up in the meantime. To make matters worse, it took three days to get a quote he could actually lock despite multiple requests.
We are always happy to provide advice to your clients, even if we cannot earn the business when it comes to new construction. Doing the right thing for a client is something we will gladly do.
Market Notes
Short and sweet on rates this past week. Most loan programs are roughly 0.125 to 0.25 percent higher than the previous week.
The uncertainty surrounding the conflict in Iran, combined with rising oil prices, were the biggest influences on the market last week. Rising oil prices, if sustained for an extended period, can add upward pressure on inflation and therefore mortgage rates.
We have talked before about the Fed’s dual mandate: controlling inflation and maintaining full employment. This week’s jobs data was very weak. The economy lost more than 90,000 jobs last month, which would typically be positive for mortgage rates. However, as I write this, higher oil prices and geopolitical uncertainty are driving the market.
We will see how this week plays out.
Looking Ahead*
Enjoy a great week, and as always, if you have a mortgage related question or need a preapproval, please do not hesitate to reach out. Even on the road, we are available and happy to help.
-Steve-
*All loans are subject to credit approval and program guidelines.