Now that the mini refinance boom has ended, we can get back to business as usual. Many clients who have flirted with refinancing in the past had one more window to get this transaction done and the ones who waited reaped greatly. This last dip was big in terms of the average rate for the last 18 months. We saw clients on 30 year fixed rates get locked at 3.25% again. We have not seen that since November 2012. For those of you who did not get off the fence, this may have been your last window to get the bottom. Most signs point and most information released by the FED and Fannie Mae indicate there will be rising rates in the 2nd or 3rd quarter of this year.
So, what does that mean for the mortgage industry? It means originators will shift back to focusing on purchases and that is where the business is. The Economy is growing, wages are actually increasing and people are starting to spend money. This should lead to a healthy and robust housing market this year. All indicators point to this and much information has been released covering this topic.
For those of you buying this year, be prepared to see more of the same. Multiple offers on the house you fell in love with. The 2nd half of last year, we saw more houses receiving multiple offers than I can recall in a very long time. The Bank that I work for is a national lender and we originate all over the country so we are seeing this all over the country. Obviously some markets are hotter than others, but all signs point to good health everywhere.
If you plan on buying this year, don’t get discouraged because there is a chance the first house you put an offer in, will not go through. This will be especially true when the Spring hits and the Country starts to “thaw”. You will get a feel for the market and how to offer a winning purchase price. You should also find a competent realtor to help you in this negotiations. Many times you will not save money trying this on your own. As realtors are trained to negotiate and know the true value of your market.
Happy House Hunting in 2015!
If interested in mortgage services or general mortgage questions email me at themortgageminded@gmail.com
Mortgage Mind 