Justin Perry's Mortgage Blog

Without getting too technical about what has happened to interest rates recently let me give you an example we can all understand.   If you were to call me last Friday (June 1st) for a 30 year fixed rate I would have quoted you 6.25%.   Today 30 year fixed rate mortgages are at 6.626% and still going up.  Mortgage rates are directly tied to the bond market and if you have followed the market this week you know that bonds have taken a beating. 

What does this mean to people who are house shopping?  If your buyers have a purchase and sale agreement then they should have a rate locked in.   In this rate environment consumers can't afford to call mortgage companies every day and shop around for weeks.   Have your clients call someone you trust and maybe shop them to one other lender and lock into a rate.   Locking a rate doesn't necessarily obligate them to anything.  They can change loan amounts and in some cases the terms of the loan, but if they know they want a certain property they need to at least reserve a rate.