Mortgage rates have been very volatile this past month. If you’ve been paying attention, you’ll note that the Fed is trying to drive fixed-rate conventional loans down to a 4.5% rate. Last week, The Fed announced it would purchase mortgage-backed securities, in the open market, in order to drive down mortgage rates to 4.5%.
The preponderance of the Government intervention is being perceived as inflationary. In short, investors believe that the Government has created so much money in the past eighteen months that it could render our currency as worthless as a Banana Republic. This should drive mortgage rates much higher in 12-18 months.
Mortgage rates should drift below 5%, for a brief period in January; this gives REALTORs an opportunity to speak with past clients.
Here’s who could potentially benefit from this once-in-a-lifetime event:
- Homeowners who bought their home more than five years ago.
- Homeowners who bought a home with a large (over 30%) down payment .
REALTORs should consider phone calls to those whom fit the criteria. Partnering with your mortgage professional in this campaign could broaden your reach. Consumers will be grateful for a REALTORs interest in their financing and potential move-up home buyers will be identified.
We discuss this phenomenon over on RADIO MORTGAGE.
Listen to the 15-minute podcast. Make a list of people to call, and get dialing. There are tons of people who might see this opportunity as a reason to take action.