by jbermanIt’s February 24th and the J. Berman Group is gearing up for a busier than usual March.
Two factors will likely push consumers to make some decisions on home financing sooner rather than later.
The first factor is the dramatic change in compensation for mortgage originators effective April 1st, 2011. This regulation will undoubtedly raise costs on home buyers and will result in higher interest rates being charged by all originators upon consumers. The federal government has effectively eliminated much of the benefit of shopping for a mortgage.
The second factor is the current unrest in the Middle East. A shift to safety by investors that have been riding the stock market is likely as folks are getting nervous about global events. Certainly Libya is a concern but Bahrain looms much larger as a potential powder keg for widespread chaos.
These two events should create a short-term refinancing and purchase opportunity for US homeowners. I wouldn’t be shocked to see rates touch 4.5% again for 30 year money. If you have clients or have been thinking about obtaining financing recently I recommend getting your applications updated with us so that you can take advantage of any short-term gains in the bond market. Sometimes these opportunities literally last just 24 hours.
If you missed the refinance bottoms seen in the 4th Qtr. of 2010, now is the time to get ready for another opportunity. Call me if you have questions or need help with anything, 970.455.4131. ~ JB