What happens when the waters rise?
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.