Should you buy or refinance? Are we at the bottom?
There is very promising evidence that the government is now starting to direct their buying power in the lower coupon range.   Why haven’t rates dropped more?
Three reasons why rates haven’t been affected too much:
-As rates drop, the value of existing servicing portfolios decline due to higher potential that loans will pay off early.
-Large whole loan purchasers (our investors) offset losses from their existing servicing portfolio with lower servicing values on new business. In other words, our prices do not reflect the full value of servicing that we would typically get in a normal market environment.
-Large foreign investors/banks have been selling Mortgage Backed Securities just as quickly as the Fed has been buying them. As a result, simple supply-side economics have not forced higher prices/lower rates.
Will rates go lower?
If they go lower, it won’t be much lower than today’s rates. And when will it drop, if it does?   On the fence and can’t decide?  You may be trying to jump over a quarter to save a dime. The longer you wait for the ‘bottom’, the longer you are paying your higher rate of interest. The longer you wait to buy real estate in Summit County, the greater your chances of missing historic low rates.
CALL FOR MORE INFORMATION!
Wendy Paulus
970-668-1188
303-233-5626
