Recently I helped a really nice first time home buyer locate the perfect condo for her.Things started slowly as there is not a lot of inventory. But we viewed a lot of propertis that looked interesting
I have a pre approval letter. Why won’t the sellers accept it?There are 3 reasons I can think of that sellers and their listing agent won’t like your pre approval letter.It’s a Pre Qualification
“Why are you asking me if I have been pre-approved for a mortgage already? We haven’t even looked at homes yet.”I get this question from buyer clients all the time when I ask them if they are pre-approved
The basic answer is that the two are only loosely related. But, as a rule of thumb, if news is good for investors it is usually increases the rate on a 30 Year fixed mortgage.
The rate for a 30 Year fixed mortgage is based on many factors, but one good indicator is the 10 Year Treasury Bond. As the value of the 10 Year goes up, the yield goes down and the price of the bond usually follows. So, if the Fed's reduce the Fed Rate, that tends to please investors and drive people into the stock market and out of the bond market. As a result, the price of the 10 Year Bond goes down, yields go up, and the rate of a 30 Year Mortgage goes up with it.... more