The recent drop in mortgage rates is good news for mortgage professionals and consumers alike. But the industry isn’t out of the woods yet, said Todd Sheinin, Maryland’s vice president of strategy and development. major residential mortgage companies
“When you talk to more people in every aspect of our business, from loan officers to consumers to real estate agents, everyone is eager and excited about what’s going to happen,” Shainin said.
Most of Sheinin’s customers are quoted in the mid-6% range for a conventional 30-year mortgage, with customers purchasing based on their down payment and credit score.
August is typically a slowdown in business for the mortgage industry, and this year is no exception, LO said house line. But with mortgage rates down to around 6% and expectations of further declines ahead, originators are bracing for busier days ahead.
“There’s probably a slight increase in overall applications, and people are looking for a lot. I don’t think that’s where I would expect the increase in activity to be,” Sheinin said.
Average 30-year mortgage rate drops to 6.66% house lineInflation data showed the U.S. economy has cooled and pushed down the 10-year Treasury yield, according to data from the Mortgage Rate Center on Wednesday.
After mortgage rates peaked above 7.5% in May, some LOs found a handful of refinancing opportunities.
“In general, it’s easier to refinance now and it’s easier to call our previous clients and we originated with high mortgages at 7% and lower rates, but I haven’t seen a huge recovery in the buyer’s market yet. ,” said Benjamin Segaloff, Michigan’s executive loan officer. Rocket Mortgage.
Jared Evenson, Branch Manager Cross-border mortgages Based in Spokane, Wash., he’s calling all of his past clients to look for refinancing opportunities.
“As loan originators, sometimes we think refinancing might not make sense for them, so we might not make the call because it’s still a quarter, or a half, before their time comes that it really makes sense. percentage points for that,” Evanson said.
Evenson learned over the phone that one of his clients was looking to refinance his existing 30-year mortgage into a 15-year loan. Because interest rates on 15-year mortgages are low, this makes it easier to refinance.
“It completely changed my strategy with him,” Evanson said. “If his [existing] Mortgage rates are 6.625% and loan amounts are around $650,000 and we are starting to see opportunities with rates around 6% [for a 30-year mortgage] For him. When I see the 30-year rate is 6%, his 15-year rate is probably 5.5%, so now might be the time to pull the trigger sooner than later.
Mortgage rates, which typically move in tandem with 10-year Treasury yields, are expected to fall further in the coming months as Fed A rate cut of 25 to 50 basis points is widely expected in September.
“When we get rates below 6 percent, I think refinancing opportunities are going to explode because we’re going to be able to streamline every loan with FHA and then every loan that we’ve done in the last two years will be able to be refinanced,” Segaloff said.
The general consensus among LOs on the magic rate of stimulus activity is in the range of 5%.
“I think the real key is as rates continue to fall, once we get to where we have five handles ahead, even 5.875%, that’s where we’re really going to see activity,” Sheinin said.
Evenson added: “When rates get down to around 5, you unlock a whole set of sellers because as rates get closer to current rates, going from 4.25 per cent to 5.25 per cent is not that hard to swallow.”
