Shelter Six:  Mortgage Rates Experience Wild Ride

Mortgage rates have been on a wild ride over the last few weeks, experiencing both all-time lows and all-time surges during this time.

Two Sundays ago, the Federal Reserve aggressively slashed short-term rates to zero, but it is critical to understand that this does not directly influence mortgage rates.

Mortgage rates dropped as the stock market tanked and investors shifted holdings into bonds, and later thanks to the Fed cutting rates and announcing bond-purchase programs.

Mortgage rates subsequently surged as investors began to sell everything, including bonds, in the pursuit of cash, and because of lender capacity concerns over being able to get loans closed.

Non-conforming Wall Street-backed products are really struggling right now as many specialty Non-QM loans are temporarily going away and Jumbo rates are especially high.

Appraisals are now running 2-3 weeks but lenders and closing attorneys continue to find ways to get loans closed.  Mortgage prospects’ best course of action is to get applications and loan documentation submitted and be ready to lock when rates drop.

Rate Update

The coronavirus continues to dominate financial market news and cause extraordinary daily movements.  Mortgage rates have remained resilient, however, with the 30-year still in the mid to high 3’s.

This Week

Investors will be watching for news about government special operations and fiscal stimulus relief programs.  Economic data will begin to reflect the negative impact of the epidemic.

March 23, 2020 by · Leave a Comment

About James

James A. Williamson is currently the Sr VP of Sales Development for Shelter Lending Services (formerly Fairfield Mortgage). James joined Shelter in 1994 and was the company's top Loan Officer in GA for 20 straight years helping over 2500 families finance their homes. James now oversees an incredible group of Loan Officers in Atlanta while further building Shelter's Atlanta business.

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