Mortgage Blog

The rate went up a little bit. This is normal
reaction for the market when the rate was down
for 3 straight weeks.

Read Warren Buffet's books and Autobiography.
The only I remember is that don't pay too much
attention to the market, the news and focus on the
fundamentals. And investment in something you
can understand.

It's the same as the mortgage rates. We don't have
to focus on the market. We all know that the rate
will be within a trading market, and lock when the
rate is low and float when it is high. And I had
one past client who told me he wanted to switch
another lender to get 0.125% better rate to save
$20 extra. The truth is that you will never know
which rate is the lowest rate.

I have lots of clients share the similar experience.
They told me that they though it's the bottom when
they got 3.625%(high-balance) or 3.5% conforming
and will not do the refinance again. And the truth
is that the rate is heading lower.

And when those opportunity comes up, we will
happily refinance again.

There are two factors affecting the current market:
1)G-fees kick-in. The lender took too much to prepare
the fees. PF took 0.625% for 30 yr fixed. That's too much.

2)Lenders hold too much profit. This will help their
balance sheet. Yes, indeed. But they will gradually
lower the rates, lower the margin. But still lock
the rate, when the rate is "right" for you.