Rates are flat today. My advice is to lock now! Uncertainty is not good for mortgage bonds!! Today’s comparison mortgage rates with no lender fees are 4.5% on a 30 year, 3.625% on a 15 year and 3% on a 5/1 ARM. (click here for details).

I just wanted to congratulate my fellow “Top 25 Most Connected Mortgage Professionals” that made the National Mortgage Professional Magazine’s list. I am truly honored. There are some great people on here with great knowledge to share, so click here to see the list. I would suggest following them all on your favorite social media sites.

To help me celebrate, just tweet @RatesinMotion with the #transparency hashtag and I have a special prize for you. (try it)

Ok, now on to the serious stuff. With the US debt ceiling all over the news, I thought we should cover a few ways this may affect you if you’re in the industry, shopping for a home, or looking to refinance.

I discuss my three biggest concerns in today’s episode:

(Watch it on your mobile phone or email reader here)

To check out the “Top 25 Most Connected Mortgage Professionals” list, click here. Don’t forget to tweet @RatesinMotion using #transparency.

Here are the three main ways that the debt ceiling default issue is affecting or will affect mortgages and the real estate industry:

1. If the US defaults on its debt, things would get ugly. Potentially, we could see mortgage rates double, confidence in the US crushed, and home prices fall further. You thought we had appraisal issues right now…

2. A more likely scenario could be a downgrade in our AAA status which will still result in higher mortgage rates. This seems to be a 50/50 chance right now. If we see this happen we could see rates go from 4.5% to 5.125% for my benchmark 30 Year Fixed rate I talk about each day. That is a huge difference if you are looking at today’s low rates.

3. Fear and uncertainty are currently driving the markets right now and it won’t get better if we default. Until this situation is figured out we will most likely see rates get worse. Let’s hope the government doesn’t wait until the final hour to get this solved. August 2nd is right around the corner!

What’s your take? What do you think will happen? Leave a comment below.

Also, if you get a chance, I would love it if you could help me bring transparency to mortgage lending by sharing today’s episode on Facebook or Twitter.

Let’s change the way people shop for a mortgage…forever!

See you tomorrow!

– Mike

PS. To ask a question, get advice, or find out if you’re getting the best deal possible on your loan, just post a comment below. Daily comparison rates, calculators, and other cool features are available in the free Rates in Motion LoanApp by going to your smart phone and clicking on this link, activation code is 9203780002

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