September 25th, 2019 6:56 PM by Andrew Walter May
Many investors guarantee free float-downs on rates. While these guarantees exist, they rarely are implemented (it's shady). We recently locked and closed two consumers at 3.625% (rates vary depending on borrower profile). Both were closed within the 45 day window of rate locking. At ADRMortgage.com we also have a RapidRefi program that helps lock in the rate you want. If you are at 4.25% and want to lock at 3.5% - we can show you how. Call us to better understand what's real and what's fiction in the mortgage industry.
Also, SOFR is replacing LIBOR - SOFR is a synthetic treasury index that is harder for banks to manipulate. That's why LIBOR is no longer going to be used for mortgage ARMs (adjustables). The short term over-night market blew up this week, and the Feds pumped $90 billion to prop up this market (which is to say, investors hate uncertainty - and rates go up when there's uncertainty).
Longer term rates have risen by about 1/8th of a point over the last 30 days. I expect them to come back down another .25%. That equates to about 3.5% on a 30 year fixed with 25% down payment and excellent credit. All borrowers are priced according to their individual financial profile so these rates may become available in the fourth quarter. If you are waiting for these rates I suggest you have your application in (no charges from ADRMortgage unless we close you: You will have to pay for third party services such as an appraisal, if necessary). To give you perspective on rates - the 30 year fixed hit 3.25% as the lowest locked mortgage rate ADRMortgage ever did. Consumers sitting on the fence may be disappointed if rates track north next year.