The Trigger Finger on Mortgage Interest Rates

Volatile times with our economy are giving lenders an itchy trigger finger when it comes to issuing rate sheets.  Just today, one of the lenders we work with issued 4 different rate sheets with various price change.

Lenders are just simply jumping at the bit…if you look at them cross-eyed they will issue a new rate sheet. It makes for very interesting times for Loan Originators when you’re trying to lock in a rate that you have just told a borrower is available.   During a rate change, many bank systems will hold or freeze during the change and you have to wait until the change is complete before you can see how it will impact you.  Those few minutes are enough to drive you crazy and you’ll will either be a hero to your client or not after the rate change takes place.

These days, several rate changes are the norm and not the exception.   Consider this, based on the last 30 days with a conservative lender who only offered two rate changes today (vs. the four another lender did today):

• Days of daily rate sheet without changes in last 30 days: 7
• Days with two intra-day price changes for a specific day within the last 30 days: 10
• Days of three intra-day price changes for a specific day within the last 30 days: 5

A lender with a trigger finger can work in your favor when rates are improving.  Even better, a Mortgage Professional who works with several resources, such as a mortgage broker or correspondent lender, may be in your very best interest.

More drama is on the slate for tomorrow for mortgage interest rates with the CPI being released…stay tuned!