The end of the year brought many changes to the mortgage market, with the election results and the Federal Reserve beginning to inch rates higher.
2017 looks to be a year that will move away from the rock bottom interest rates we’ve gotten accustomed to over the last few years. As the market changes, we must do a better job of keeping our borrowers informed. This could be their final chance to secure a low rate, and we need to exude urgency upon our borrowers.
As rates rise, we’re going to start seeing borrowers move from rate and term refinances to cash out and debt consolidation. Paying off high interest credit card debt will become a higher priority while mortgage rates are still low.
Low interest rates have fueled the increase of home values, while still keeping homeownership within reach. Low rates have made homes more affordable. This will change as mortgage rates increase. Right now is a great time to take cash out for home improvement while values are still high.
Since this is the home stretch of low rates, now is a good time for adjustable and interest only loans to be refinanced before mortgage indexes rise. There is a lot of uncertainty in the market so we should encourage borrowers with a low risk tolerance to refinance now and protect themselves.
The election also brought about changes in the mortgage market. Donald Trump’s victory led to a surge in bond yields, and that in turn pushed up mortgage rates.
Donald Trump has stated of Dodd-Frank that he wants to “get rid of it or make it smaller” so a change in mortgage regulation could be on the way. If the market begins to become more bank friendly with fewer regulations, we could see expanded guidelines that will spur new activity and business.
Only time will tell what is on the way, but at Secure One Capital we are prepared to handle whatever comes our way. There is no one that I trust more than our leadership team to move into this new market. Our company has decided to grow while others are downsizing. Because of the extensive experience of our management team in the benefits based refinance market, I feel very confident in our strategy. Our entire team must adapt to our company’s new way of life to ensure Secure One Capital’s growth plans reach our target goals.