South Orange County Blog from Bob Phillips

How You Can Get The Most Accurate, Real-Time Mortgage Rate Quotes Available

Posted in home affordability, mortgage rates, Real estate, Refinances by southorangecounty on February 23, 2010

You can’t get your mortgage rates from the newspaper. Last week proved it. Again.
Friday morning, headlines and around the country read that mortgage rates were down 0.04 percent, on average, since the week prior.

A sampling of said headlines includes:
    US Mortgage Rates Drop For 2nd Straight Week (Reuters)
    Mortgage Rates On 30-year US Loans Fall To 4.93% (Business Week)
    30-Year Fixed Mortgage Rate Falls Farther Below 5% (Marketwatch)
The
story behind the headline was sourced from the Freddie Mac Primary
Mortgage Market Survey, am industry-wide mortgage rate poll of more
than 100 lenders. The PMMS has reported mortgage rate data to markets
since 1971 and is the largest of its kind.

Unfortunately, rate shoppers can’t rely on it.
See,
unlike governments and private-sector firms, when consumers are in need
mortgage rate information, they need the information delivered in
real-time; for making decisions on-the-spot. Consumers need to know
what rates are doing right now.

The Freddie Mac survey can’t offer that.

According to Freddie Mac, the survey’s methodology
is to collect mortgage rates from lenders between Monday and Wednesday
and to publish that data Thursday morning. The survey results are an
average of all reported mortgage rates. The problem is that mortgage
rates change all day, every day. The PMMS results are skewed,
therefore, by methodology.

And, meanwhile, the issue was
compounded last week because mortgage rates shot higher Wednesday
afternoon — after the survey had “closed”. The market deterioration
ran into Thursday, too — again, unable to be captured by Freddie Mac’s
PMMS.

Although the newspapers reported mortgage rates down last
week, they weren’t. Conforming mortgage rates were higher by at least
1/8 percent, or roughly $11 per $100,000 borrowed per month. In some
cases, rates were up by even more.
Newspapers and websites can
give a lot of good information, but pricing is far too fluid to rely on
a reporter. When you need to know what mortgage rates are doing in
real-time, make sure you’re talking to a loan officer. Otherwise, you
may just be getting yesterday’s news.

The loan officer I highly recommend is a direct lender, where the entire loan is processed in his local ( South Orange County.) office, and like me, he has over 33 years of successful local experience. Give me a call ( 949-643-2100 ) or shoot me an email ( BobPhillipsRE@gmail.com ) and I would be happy to give you his contact info.

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