{"id":4102,"date":"2020-03-20T10:06:12","date_gmt":"2020-03-20T15:06:12","guid":{"rendered":"https:\/\/riverbankfinance.com\/blog\/?p=4102"},"modified":"2020-03-20T10:06:14","modified_gmt":"2020-03-20T15:06:14","slug":"why-arent-mortgage-rates-lower","status":"publish","type":"post","link":"https:\/\/riverbankfinance.com\/blog\/why-arent-mortgage-rates-lower\/","title":{"rendered":"Why Aren&#8217;t Mortgage Rates Lower?"},"content":{"rendered":"\n<p>We have been receiving endless calls, texts, and emails from past and future clients asking about refinancing their mortgage. <\/p>\n\n\n\n<p>First of all, thank you for trusting us to be your mortgage advisor. We truly want the best for our clients. Our goal is to educate and provide information on what is happening in the mortgage markets and with mortgage rates. <\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p>Watch the video below to get a brief summary of the pressure upward on mortgage rates:<\/p><\/blockquote>\n\n\n\n<figure class=\"wp-block-embed-youtube wp-block-embed is-type-video is-provider-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<iframe loading=\"lazy\" title=\"Why Aren&#039;t Mortgage Rates Lower?\" width=\"1200\" height=\"675\" src=\"https:\/\/www.youtube.com\/embed\/TgsJcUhg4Ts?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture\" allowfullscreen><\/iframe>\n<\/div><\/figure>\n\n\n\n<p>There are several other factors affecting mortgage rates as a result of the Coronavirus. <\/p>\n\n\n\n<ol class=\"wp-block-list\"><li><strong>Lender capacity<\/strong> \u2013 There are currently over 11 trillion in mortgages outstanding. About half have rates that may be lowered by refinancing. The entire financial market (banks, mortgage lenders etc) fund around 3 Trillion <strong>per year<\/strong> in volume. A huge wave of applications came in in that short 2 week span of historically low rates. To slow down application, banks and lenders increase rates to which reduces the benefit of refinancing.<\/li><li><strong>The mortgage backed security market is extremely volatile.<\/strong> The buyers of Mortgage backed securities are seeking shelter in cash and treasury notes. (Could you imagine if we have a 20% unemployment rate \u2013 people will not be able to pay their mortgages). With less demand, rates go higher.<\/li><li><strong>Early Pay Off Penalties<\/strong> \u2013 If a loan if paid off within 6 months of origination, the lender and originator get his with thousands in fees. If they drop rates and refinance people too quickly they will have huge losses.<\/li><li><strong>Lastly lenders have to \u201cHedge\u201d the markets.<\/strong> In simple terms, this is where lenders buy an insurance policy to insure the locked loans against volatility. This covers to an extent, however, if markets change a significant amount, they have to contribute large amounts of capital. This has happened several times recently so banks and lenders have major liquidity risks. <\/li><\/ol>\n\n\n\n<p>In Summary, rates may drop back down over time, but with the volatility, pricing has gone up significantly in the past two weeks.  There has never been a more important time to work with a mortgage professional that knows, watches and understands the financial markets. <\/p>\n\n\n\n<p>Clients that may benefit from refinancing at this point are those that would like to receive cash out or do a debt consolidation. Now is a great time to leverage the equity in your home to reduce your monthly expenses. Reach out to us at 800-555-2098 if you are interested.<\/p>\n\n\n\n<div class=\"wpcf7 no-js\" id=\"wpcf7-f185-o1\" lang=\"en-US\" dir=\"ltr\" data-wpcf7-id=\"185\">\n<div class=\"screen-reader-response\"><p role=\"status\" aria-live=\"polite\" aria-atomic=\"true\"><\/p> <ul><\/ul><\/div>\n<form action=\"\/blog\/wp-json\/wp\/v2\/posts\/4102#wpcf7-f185-o1\" method=\"post\" class=\"wpcf7-form init\" aria-label=\"Contact form\" novalidate=\"novalidate\" data-status=\"init\">\n<fieldset class=\"hidden-fields-container\"><input type=\"hidden\" name=\"_wpcf7\" value=\"185\" \/><input type=\"hidden\" name=\"_wpcf7_version\" value=\"6.1.5\" \/><input type=\"hidden\" name=\"_wpcf7_locale\" value=\"en_US\" \/><input type=\"hidden\" name=\"_wpcf7_unit_tag\" value=\"wpcf7-f185-o1\" \/><input type=\"hidden\" name=\"_wpcf7_container_post\" value=\"0\" \/><input type=\"hidden\" name=\"_wpcf7_posted_data_hash\" value=\"\" \/><input type=\"hidden\" name=\"_wpcf7_recaptcha_response\" value=\"\" \/>\n<\/fieldset>\n<div class=\"ApplyFullHeader\" id=\"apply_form\">\n\t<p class=\"replaceheader\">Request Information Now!\n\t<\/p>\n<\/div>\n<div class=\"blueBox\">\n\t<p><span class=\"wpcf7-form-control-wrap\" data-name=\"your-name\"><input size=\"40\" maxlength=\"400\" class=\"wpcf7-form-control wpcf7-text wpcf7-validates-as-required\" aria-required=\"true\" aria-invalid=\"false\" placeholder=\"Your Name (required)\" value=\"\" type=\"text\" name=\"your-name\" \/><\/span>\n\t<\/p>\n\t<p><span class=\"wpcf7-form-control-wrap\" data-name=\"your-email\"><input size=\"40\" maxlength=\"400\" class=\"wpcf7-form-control wpcf7-email wpcf7-validates-as-required wpcf7-text wpcf7-validates-as-email\" aria-required=\"true\" aria-invalid=\"false\" placeholder=\"Your Email (required)\" value=\"\" type=\"email\" name=\"your-email\" \/><\/span>\n\t<\/p>\n\t<p><span class=\"wpcf7-form-control-wrap\" data-name=\"your-phone\"><input size=\"40\" maxlength=\"400\" class=\"wpcf7-form-control wpcf7-text wpcf7-validates-as-required\" aria-required=\"true\" aria-invalid=\"false\" placeholder=\"Phone:\" value=\"\" type=\"text\" name=\"your-phone\" \/><\/span>\n\t<\/p>\n\t<p><span class=\"wpcf7-form-control-wrap\" data-name=\"your-goal\"><select class=\"wpcf7-form-control wpcf7-select\" aria-invalid=\"false\" name=\"your-goal\"><option value=\"Purchase\">Purchase<\/option><option value=\"Refinance\">Refinance<\/option><option value=\"Cash Out\">Cash Out<\/option><option value=\"More Information\">More Information<\/option><\/select><\/span>\n\t<\/p>\n\t<p><span class=\"wpcf7-form-control-wrap\" data-name=\"your-message\"><textarea cols=\"40\" rows=\"10\" maxlength=\"2000\" class=\"wpcf7-form-control wpcf7-textarea\" aria-invalid=\"false\" placeholder=\"Your Message:\" name=\"your-message\"><\/textarea><\/span>\n\t<\/p>\n\t<p><span class=\"wpcf7-form-control-wrap\" data-name=\"referer-page\"><input size=\"40\" maxlength=\"400\" class=\"wpcf7-form-control wpcf7-text referer-page\" aria-invalid=\"false\" value=\"\" type=\"text\" name=\"referer-page\" \/><\/span><br \/>\n\t\n\t<\/p>\n\t<p><input class=\"wpcf7-form-control wpcf7-submit has-spinner submit\" type=\"submit\" value=\"Submit Now!\" \/>\n\t<\/p>\n<\/div>\n<div style=\"text-align: justify; color:#666666;font-size: small;\">\n\t<p>By clicking \"Submit Now!\", you consent to receive calls and texts at the number you provided, including marketing by autodialer and prerecorded and artificial voice, and email, from Riverbank Finance LLC about your inquiry and other home-related matters, but not as a condition of any purchase; this applies regardless of whether you check, or leave un-checked, any box above. You also agree to our Privacy Policy and Terms of Use regarding the information relating to you. Msg\/data rates may apply. This consent applies even if you are on a corporate, state or national Do Not Call list. This no obligation inquiry does not constitute a mortgage application. To apply now or get immediate assistance, call us at 1-800-555-2098.\n\t<\/p>\n<\/div><p style=\"display: none !important;\" class=\"akismet-fields-container\" data-prefix=\"_wpcf7_ak_\"><label>&#916;<textarea name=\"_wpcf7_ak_hp_textarea\" cols=\"45\" rows=\"8\" maxlength=\"100\"><\/textarea><\/label><input type=\"hidden\" id=\"ak_js_1\" name=\"_wpcf7_ak_js\" value=\"234\"\/><script>document.getElementById( \"ak_js_1\" ).setAttribute( \"value\", ( new Date() ).getTime() );<\/script><\/p><div class=\"wpcf7-response-output\" aria-hidden=\"true\"><\/div>\n<\/form>\n<\/div>\n\n","protected":false},"excerpt":{"rendered":"<p>We have been receiving endless calls, texts, and emails from past and future clients asking about refinancing their mortgage. First of all, thank you for trusting us to be your mortgage advisor. We truly want the best for our clients. Our goal is to educate and provide information on what is happening in the mortgage<a class=\"excerpt-read-more\" href=\"https:\/\/riverbankfinance.com\/blog\/why-arent-mortgage-rates-lower\/\" title=\"ReadWhy Aren&#8217;t Mortgage Rates Lower?\">&#8230; Read more &raquo;<\/a><\/p>\n","protected":false},"author":1,"featured_media":4110,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1,992,308],"tags":[],"class_list":["post-4102","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-local-michigan","category-mortgage-rates","category-mortgage-tips"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/riverbankfinance.com\/blog\/wp-json\/wp\/v2\/posts\/4102","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/riverbankfinance.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/riverbankfinance.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/riverbankfinance.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/riverbankfinance.com\/blog\/wp-json\/wp\/v2\/comments?post=4102"}],"version-history":[{"count":5,"href":"https:\/\/riverbankfinance.com\/blog\/wp-json\/wp\/v2\/posts\/4102\/revisions"}],"predecessor-version":[{"id":4111,"href":"https:\/\/riverbankfinance.com\/blog\/wp-json\/wp\/v2\/posts\/4102\/revisions\/4111"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/riverbankfinance.com\/blog\/wp-json\/wp\/v2\/media\/4110"}],"wp:attachment":[{"href":"https:\/\/riverbankfinance.com\/blog\/wp-json\/wp\/v2\/media?parent=4102"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/riverbankfinance.com\/blog\/wp-json\/wp\/v2\/categories?post=4102"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/riverbankfinance.com\/blog\/wp-json\/wp\/v2\/tags?post=4102"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}