Public uncertainty has  created an opportunity you should not miss

Fear, uncertainty and oil price wars have driven wave of volatility in the market. The 10-year Treasury note, a key indicator of mortgage rates, plunged to a new low. Mortgage rates have fallen steadily since the virus was first reported on December 31. The 30-year fixed mortgage rate has dropped almost a quarter of a point since the word of the virus started to spread. Thirty-year rates currently sit almost a point lower than 52 weeks ago.

What does this mean for homebuyers and refinancers?

With rates where they are today, this is a great time to take out a home loan or refinance. For homebuyers, this is a chance to jump on the spring home-buying season a little early. Homebuyers can use low rates to get more house for their money or to have a more comfortable monthly payment. Refinancers may wonder how long to ride the wave of low rates, but there’s no guarantee that rates will drop further, and they could miss the boat by waiting.

What does this mean for lenders?

The recent interest rate drop was unpredictable and nobody knows what the next thing that causes rates to drop will be. Banks and credit unions should have an always-on loan marketing philosophy. Adopting this practice will ensure that your customers are always presented with pre-screened loan options wherever they are – online and mobile banking, direct mail and digital display – and that they receive pre-screened offers from you when they apply for a mortgage with a competitor. The last thing you want is to lose a new mortgage to a competitor, as it puts the PFA status in serious jeopardy.