Mar 16, 2020

I sincerely hope all is well with you and everyone you know as these are unprecedented times. There is SO MUCH confusion and misinformation out there when it comes to mortgage rates in the current environment. Hopefully my 21+ years in the mortgage industry can help clear things up for you.

Up until Friday, March 6th, mortgage rates were behaving relatively normally. But since then, current financial markets are anything but "normal" and the government once again stepped in yesterday to help calm the panicked mortgage investors who actually INCREASED their rates last week at the fastest pace in decades due to volume & liquidity concerns. Average lender rates for well-qualified borrowers neared 4% by last Friday when they were just 3.25% at opening bell last Monday!

Yesterday (Sunday) the Federal Reserve announced they would cut their own rate to 0% - .25%. Mortgage rates do not directly follow the Fed rate, but credit cards and HELOC's do which helps us save money.

BUT they also announced that they will start buying $200 billion in mortgage backed securities which does help lower mortgage rates. This is in an effort to convince the panicked Lenders to start lowering their rates BACK to the mid 3%’s again for well-qualified borrowers. Mortgage rates might go a little lower than this, but it will take a few weeks to see if that happens since we are in uncharted territory with the current market conditions.

Just making sure you hear an honest update from a mortgage professional and company-owner of over 2 decades who watches the markets like a hawk for his valued clients. Be safe.  -Paul Wickstrom

 

Contact me TODAY if you want to take advantage of these low rates for your next refinance or purchase!

Paul Wickstrom - Broker/Owner/Mortgage Expert

Call/Text: 949-751-7979

pwickstrom@woodsidemortgage.net

4041 MacArthur Blvd, Ste.255, Newport Beach, CA 92660

CA DRE# 01704569     NMLS# 330789