Monday, April 21, 2014

Top Three Mortgage Questions

Top Three Mortgage Questions

From our own In-House Lender - Riverwood Financial Group:

Can I get approved for a mortgtage?
How much can I afford?
What will rates do?

While questions 1 and 2 are pretty borrower specific, question 3 is much wider in scope. The following is a synopsis of rates in the 1st quarter of 2014 and the general direction of rates:

*  The Fed has stayed the course on their $10 billion per meeting reduction in bond buying, though markets have handled it relatively calmly compared to the days of coming to terms with tapering in the middle of 2013.
*  Rates fell significantly in January, leveled-off in February and took choppy steps higher in March.
*  Some mitigating factors had kept rates from moving too far out of a narrow range, including the uncertain impact of weather on recent economic data as well as geopolitical risk surrounding Ukraine.
*  As soon as investors can have more confidence that the incoming data is an accurate representation of economic conditions, we should see more willingness for rates to react accordingly, with weaker data helping keep rates lower and stronger data pushing them back toward January's highs.

Barring surprises, even within the very narrow trend from January through March, we've seen a slight bias toward higher rates. It will take economic or geopolitical surprises to push back against that momentum.

Feel free to contact Mike or Gary for more details, to get pre-qualified, talk rates and payment possibilities!

Mike Miller

Gary Wiersema

Check out their website HERE

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