Now that the meteorological season has turned to fall, its not only the weather that is changing, it’s also the economy. With tropical storms and hurricanes forming in the Caribbean, it seems our interest rate market is forming their own cyclones.
At the beginning of last week, I was able to offer the lowest rates I have given on a 30 year fixed rate since 2013…..3.5%. I contacted as many clients as I could to take advantage of rates plummeting like a rock. It was also a good time to refinance because kids are back to school and I can get peoples attention. That’s no easy feat from July 4th through Labor Day because people have vacations and kids prepare to go back to school. That’s along with everything else we deal with on a daily basis. So the timing was perfect for a period of extended low interest rates, or so I thought.
Monday and Tuesday last week I worked late to get all the refinances into the system as I could. I prepared to work more late nights the rest of the week. I know when mortgage rates tumble really low out of the blue, they generally don’t last long. Unfortunately history stayed true and that’s exactly what happened again last week. First Wednesday we lost .25%. Then Thursday and then Friday happened with another .125% higher in rate each day. Rates went from the 3.5% area to now almost 4% in a few days. All those people I contacted to refinance last week now aren’t able refinance. Well they can still refinance, but the hundreds of dollars a month they were poised to save went to under $100 a month. I got in touch with everyone that missed this low point in rate to let them know rates jumped up. The message I conveyed wasn’t bleak though.
As fast as rates went up, they can go down that fast again. The mortgage rate forecast for the rest of 2018 is for lower rates and that’s what I expect too. We will jump on the next rate dip and in the meantime get the refinance process going to make it easier. It’s not only about interest rates, but it’s also about ease of transaction and knowledge of the financial and real estate markets.
If you want to take advantage of the next wave of lower rates and have an easy refinance process, please feel free to reach out to me. You can apply online at http://www.northshorehomeloans.com, on the phone at 617.688.6891 or in person at the CrossCountry Mortgage branch in downtown Gloucester (by appointment only).
If you are not sure if you can refinance, and want to make it easy, text me a photo of your current mortgage statement to 617.688.6891 and you will hear from me within the hour (8am-8pm 7 days a week)
Mortgage rates are like waves, and we will catch the next wave and ride it into savings!