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Lorie Woodruff's Blog

By Lorie Woodruff | Agent in Bowie, MD

Mortgage rates may go lower


HousingWire's Morning Radar takes a look at Monday Morning Cup of Coffee.

Mortgage rates after likely to grind lower as originators continue trying to attract the marginal borrowers who are increasingly less responsive. Last week, rates dropped to their lowest point ever.

Originators with significant infrastructure such as Wells Fargo adjust their capacity to meet demand, it’s still a process that takes months to conduct.

Barclays Capital points out that originators could hire a significant number of temporary workers. However, the firm says, most prefer to keep critical tasks such as credit decisions with in-house employees, and training those employees is a time-consuming process.

“We believe that originators will take time to ramp up their capacity, precluding a sharp drop in mortgage rates in response to the drop in the current coupon,” analysts at Barclays say.

“In the meantime, rates are likely to grind tighter as originators continue trying to attract the marginal borrowers who are increasingly less responsive, given that a new lifetime low in mortgages rates has been almost continuously on offer for more than three years," they concluded.

Read more at HousingWire.


By: J Hilley

Comments

By Akil Walker,  Fri Dec 14 2012, 18:28
This would be great news!

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