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3 BIG Things You Need to Know This Week- February 19th, 2021

Hey there, it’s Bruce Woodburn, CrossCountry Mortgage and it’s time again for the three big things you need to know. Man, what a crazy week, this week went by so fast and what a whirlwind. So this is a really important message for all of you that are in real estate or considering purchasing or refinancing in real estate right now. This primary message does go out to my realtor partners so that you’re better informed as to what’s going on in the market, so that you could be a better servant leader to your clientele. So let’s talk about the three big things you need to know.

  1. First thing is, interest rates are going up and they’re going up fast. You heard me! Man, we’re going right from those twos into the threes. I’m seeing some rates that are already up into the mid threes from the mid two’s. It’s just changed overnight. You’ve got to be aware that if you’re purchasing a home, if you’re in contract to build a home or if you are considering refinancing, you know, you really missed out on those best possible rates. They’re still good, they’re still very low. I’m not trying to discourage anybody whatsoever, but they’re going up. What’s driving interest rates up? The bond market. That’s what drives interest rates up. The Fed doesn’t have anything to do with your 30 year or the 15 year fixed. They have nothing to do with it. It’s not tied to prime rate, It’s tied to the mortgage backed securities on the 30 or the 10 year bond yield and when that bond is deteriorating, then interest rates go up. So Bond’s took a major hit this week and a little bit last week. If you’re considering refinancing, do it now. If you’re considering buying a home and you wanted those great rates, do it now, it’s just the right time. This is not a doom and gloom call. I’m not expecting interest rates to go skyrocketing up. I’m really not skyrocketing up would mean they’re gonna hit the fives and sixes before you know it. Now could that potentially happen in the next 12 months? Very much so. A lot of people think, “Oh, because the economy is slow that interest rates will stay low.” The Fed can’t lower the rates below what they are already. They’re already zero. You can’t give money back to borrow money. So that’s that. That’s the first big thing you need to know.
  2. Second big thing I mentioned this last week and I’m gonna mention again this week because I still hear a lot of folks out there that are just not understanding. Appraisals are delayed right now. Appraisals are delayed three weeks on average around the country. A rush appraisal is like 7 to 10 days, and that’s gonna cost you an arm and a leg to get one. So order your appraisals as soon as you apply for your mortgage and you’re in contract, or if you’re refinancing, do it immediately because they’ll delay. Why do you care if they’re delayed? Because if your interest rate is subject to a particular time that it has to close on and your appraisal doesn’t come in on time, you’re going to be subject to a lock extension. It’s gonna cost you money. So appraisals are taking longer. If you’re a real estate agent and you’re writing on there that the appraisal has to be in in 10 days, you just set everyone up for disaster. It’s not gonna happen.
  3. And then the third big thing you need to know is that I am having my Mortgage Strategy class for real estate agents this month on the 25th. That would be at 10 o’clock on the 25th of February. You will need to log in in advance. But listen, we’re gonna talk about all the changes in the industry. We’re going to talk about everything that’s going on and things that you need to be aware of. So you could be, a better real estate agent to your clients. It doesn’t matter if your new agent or if you’re a really seasoned agent There are things that have changed that you should know about, and this class is going to cover a lot of that. So I look forward to having you log in to my Mortgage Strategy class. You must register at WeBringYouhome.com, that’s WeBringYouHome.com. Go to my events page and register for the class in advance. I have limited seats available. This is an interactive class, so I want you to be able to listen and ask questions during the class. I can’t do that with 100 people in the room. You can do that with 15-20. That’s about as far as I can go. So I look forward to having you join my class.

Hopefully the three big things you need to know is of value to you. And I’m really looking forward. To helping you all walk through your next mortgage transaction. Have a great day.

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