In our relentless pursuit of securing an attractive mortgage interest rate, as with so many other things in life, timing is everything. What do I mean? Well, as I described in our last article, interest rates have been climbing steadily since mid-June. That is not to say that there have not been occasional dips in the interest rate pricing. The overall trend, however, has been a steady upswing. It is when interest rates temporarily drop that opportunities to lock in exist. The trick is to time the lock properly because the window of opportunity might open quickly and slam shut just as fast. Late last week provided a perfect example. Experienced rate watchers understand the importance of keeping abreast of the market. July saw the release of three key indicators that pointed to a strengthening economy. One of those indicators was an acceptably low (under 400,000) number of Americans filing for unemployment benefits. However, the unexpected announcement that 413,000 Americans filed for unemployment the last week of August caused the yield on the 10-year Treasury note to drop by one quarter of a point in two days. Mortgage interest rates plummeted and a flurry of homeowners applied to refinance their mortgages. However, since the end of last week, the yield is back up. Most economists see this as an isolated incident that does not figure to interrupt the pattern of rising rates. Many rate sensitive people missed the boat which underscores a valuable lesson to be learned: the importance of timely information and counsel. The best way to navigate the process is to rely on a knowledgeable and attentive mortgage professional that is attuned to market data. A good mortgage professional handles much more that simply taking an application and gathering the necessary paperwork. By being proactive and contacting clients to advise a rate lock when market conditions are favorable, by encouraging my clients to think of me as an educational resource, by listening carefully to what my clients say and what their wishes are, and by giving them options rather than one way to fulfill those wishes, I keep my customers happy and loyal. If you were quick to act on the drop in rates last week, you should be commended. For those who missed last week’s opportunity, don’t despair. In all likelihood there will be more chances in the weeks and months ahead. Just remember the importance of putting your trust in a mortgage counselor who understands the market and realizes the value of providing timely, accurate information and advice. For questions or comments,
I can be reached at (516) 935-5600, ext. 13 or by mail: Beechwood
Capital Company, LLC, 500 North Broadway, Suite 268, Jericho, NY
11753. |
