The Federal Reserve has been on a mission to get long term interest rates lower in order to help spur the economy. One of the biggest areas of focus has been mortgage rates, with a promise of $500 Billion to purchase mortgage bonds. This promise was just raised to $1.25 Trillion for 2009 alone!
One would think that with the Fed buying $1.25 Trillion worth of mortgages this year that rates might fall even lower than the already record lows, but most analysts think that not. The problem is that when lenders are paying overtime to try and process all the mortgage applications they already have, there is not much incentive to offer lower rates.
Many brokers have complained to me personally that it is taking 2-4 weeks to get their loan files underwritten by the big lenders right now. That means that if you lock an interest rate for 30 days, your loan might not close on time and you might lose that rate lock. The good news is that rates probably won’t be much higher so you can just lock again.
Most experts think rates will be between 4.75% and 5.5% for the remainder of this year, but I have not found anyone in the industry that predicts sub-4.5% rates. If you want to buy or refinance you should get started right now to reduce the chances of delay.
Myers Park Mortgage is running 24-48 hours in underwriting right now. Our processing systems have always allowed us to deliver superior service in this market and right now those same systems are keeping us weeks ahead of the competition. If you would like more information please call Olan Carder at 980-721-7478 or visit me online at www.charlottemortgageonline.com.