Well, I took quite a hiatus in my blogging, didn’t I? I have a Facebook business page (https://www.facebook.com/LoansByIrene), and my last posts there all had to do with how the market has been improving and how I was renegotiating interest rates for all my current loans in the pipeline. The downward trend in decreasing interest rates started in late July and hasn’t quite let up, so it has been very busy (in a great way). I also finished up with my Master’s Degree in Business in August, so that took its toll in time too and my blog just happened to go on the back-burner.
The main reason for the downward trend in rates has been all the turmoil and news surrounding the debt crisis in Greece and Europe. All that uncertainty has investors taking their money out of stocks and pouring it into bonds. Mortgage rates fluctuate depending on how mortgage bonds are trading, so all of this news has a significant effect on our interest rates.
Also, the temporary high balance loan limits are officially unavailable as of September 30th, and no new locks have been allowed since the beginning of the month. For the Bay Area and many counties throughout California, this limit of $729,750 has reverted down to the “permanent” limit of $625,500. This also had a huge impact on people jumping on the chance to refinance (as well as purchase) in time before the change was implemented. Interest rates, down payment requirements and qualifying are much more stringent on Jumbo loans (those above the high-balance loan limit).
This was just a general update in the market and how rates have been trending. They are currently on an uptick because, apparently, sentiment towards the debt crisis in Europe is now not as negative. Yes, that’s all it takes to cause market swings and volatility. I will keep you posted and will get back to blogging more consistently. There is certainly a lot to continue to share!
