What happens when the waters rise?

June 9, 2015

Rates are rising and causing the death of refinance business.  If you have not refinanced within the past few years your opportunities are about to expire.  Rising rates have been the talk of the real estate industry for several months; well it’s all starting to hit the proverbial fan.  Three things happen when the ebb and flow of the rate tides hits its highest point:

  • When rates rise and refinance business essentially dries up only the best loan officers stay afloat.  A better loan officer is going to find new business opportunities through relationships they have built with referral sources such as real estate agents who are helping them push purchase business.  This leads to….

  • People are always going to be moving for work, family, or education and therefore there will always be purchase business. Although they are going to be getting a higher rate now to buy a home than they may have in the past few years the average person only keeps their loans for 5-7 years anyway.  This leads to…

  • A possible refinance boom in 5-7 years.  As the tide of rates rise and fall over a period of time they stay pretty cyclical in that a purchase business boom is often followed by a refinance boom. 

Only time will tell as we move forward into a time of higher rates, fewer refinance opportunities and the ever larger need to build solid relationships with referral sources. 

Please contact me for questions on your next new home purchase.  If you have a friend, family member, or co-worker looking to buy a new home soon, please give them my information.  My focus on customer service and setting the right expectation for new home buyers is what separates me from the crowd. 

Thanks!

 

 

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Contact

 zach.williams@yourstatebank.com

State Bank

4080 W Dublin-Granville Rd

Dublin, OH 43017

The State Bank and Trust Co. and its loan officers, are not liable for information, claims or agreements made by/between the public and third-party entities. These third-party entities may include, but are not limited to: builders, developers, or real estate agents. Even though the loan officer co-sponsoring this site makes efforts to update the information contained, much of it is provided by independent vendors and data feeds, and thus, this site may contain errors, outdated information or purchase conditions, promotions, incentives and/or possible omissions. The State Bank and Trust cannot guarantee the accuracy of information provided, and we encourage buyers to complete their own due diligence in making a decision to build or purchase a home. We also suggest that you seek the professional representation/advice of a licensed Realtor®, as well as any other licensed professional that is appropriate to your purchase decision, including, but not limited to: attorney, accountant, or certified financial planner. Visitors to this site are responsible for the use and decisions made regarding the purchase of a home with regards to the information contained herein. The State Bank and Trust Co. is an Equal Housing Lender. 


Disclaimer: No statement on this site is a commitment to make a loan. Loans are subject to borrower qualifications, including income, property evaluation, sufficient equity in the home to meet Loan-to-Value requirements, and final credit approval. Approvals are subject to underwriting guidelines, interest rates, and program guidelines and are subject to change without notice based on applicant's eligibility and market conditions. Refinancing an existing loan may result in total finance charges being higher over the life of a loan. Reduction in payments may reflect a longer loan term. Terms of any loan may be subject to payment of points and fees by the applicant. The State Bank and Trust is an Equal Opportunity Lender. | Privacy Policy