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October 1, 2011



by billthemortgageguy

I am constantly being asked ” Why are your rates at 4% when I see rates at 3.875% or 3.375% or 3% from all the other RATE WEB-SITES?”  My answer is a two-part response.

The first is“Each loan has its own unique scenario and every loan is different from the next.. AND the days of shopping rates online are gone.”  I would compare it to asking Web MD if the cough you have is Tuberculosis. Without asking all the “right questions” you will never be able get the exact rate and closing costs for your scenario.   Quoting a mortgage rate has become much like diagnosing a disease, and in some cases the reaction I receive is much like I have told someone they were going to die!

The second part of my response is “Rates  change and they are changing quickly..”  We are in a volatile market. One that could force rates down a .25% one day, and up a .50% the next.  As Mentioned, in earlier post the rule of thumb is “RATES SHOOT UP LIKE A ROCKET AND FLOAT DOWN LIKE A FEATHER”, but in recent weeks we have “once again” seen the government step in and put “our tax dollars” to work causing this volatility and rates to drop lower than they ever have.. With that being said, each day is a  roller coaster ride of volatility..As you can see from the graph below Fridays market was a wild ride! We literally had 2 rate changes throughout the day, better and then worse, better and worse! Even through all this madness Rates seemed remain unscathed..  In the beginning rates jumped a .50% from where we were last week, but ended with little change..

Looking ahead we can expect more of this volatility until we see a clearing ahead.  Picture a plane going through the storm(THE ECONOMY) and the turbulence you experience(THE MARKET VOLATILITY). This is what “WE ALL” are experiencing right now as a nation, but there are opportunities to be had..You just have to respond at the right time.. Good luck and have a great weekend!


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