FNMA 4.0% bond is UP another 19 cents today to close at $100.34. This is great news and rates actually improved AGAIN today. We are in such a ridiculously low rate environment that people are starting to get complacent.
Applications are down! According to a release by the Mortgage Bankers Association refinance applications are down 14.3% and purchases are also down by just over 5%. Applications in general are actually down just over 12%. Why is this? Remember that people who are interested in refinance or purchase of real estate are people. What do I mean by that? Even though it makes good sense to think that lowering a mortgage interest rate or purchasing a home in today's incredible marketplace full of "good deals": people are still a complex set of individuals. Each person has different reasons for "why not" vs. reasons "why" they would want to explore purchase or refinance real estate in places like Bozeman, Montana where I am or in any given market place. The biggest reason "why not" which seems to override any "good sense" in "why to" is FEAR.
Fear of rejection is one form. Fear of purchasing now and having rates or market values go lower still is another. Fear that a person's exit residence will not sell could be one reason. Fear of job security and others one could imagine. Unfortunately: most of what we worry about is completely based on past experience or the experience of others. The good news: these are different times than we have really ever seen before.
Also Good News: those who are able to take an honest look at whether or not purchase or refinance is right for them and get an honest answer are taking advantage of a very rich marketplace. Remember that when 30 year fixed interest rates are in the 4.5% range as they have been again: a person's money goes a long way in a marketplace where homes are undervalued as they have been getting here in Bozeman lately.
Ever hear the Warren Buffet quote about fear? "When people are scared: get greedy...and when people are greedy, get scared." We are moving closer to the middle of that everyday. Remember the other quote about opportunity from Warren Buffett? "By the time you see the Robins, spring is over."
Good luck in your marketplace finding good buyers who are looking for what you provide so well.
Cheers,
Chad
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Chad Schauers
Montana Mortgage Lender, Bozeman, Montana
Personal Cell: 406 799 8613
Personal Email: metchad@gmail.com
