Rate jump and its effect on the market
We are all on the edge of our seat to see what a recent rate bump effects the Spring Market.. Some recent positve economic news has pushed rates higher by nearly .5% in the past week or so. Just as sellers begin to put signs on their front lawn.. VERY interesting to see how buyers respond to the payment shock that last rate jump caused. Will this lead to a balanced market, will this lead to a dud of spring market?
My strategy as a mortgage broker is always: education, options and communication. Whether its buydown, ARMS or projecting worst case scenarios and prepping for an inevitable refinance. For my primary buyers, the 10/6 ARM in the 5.25-5.375% range is making alot of sense.