Perception or Reality

Similar to the message in this photo, every day is a day that I must adhere to facts and truths while demystifying urban legends and hearsay.

For several months my office has been receiving phone calls from consumers asking about 4% mortgage rates that are guaranteed by the government. During this span of time it was accepted as the new norm of consumer inquiries.

Most often times than not, the consumer had heard about the ultra low mortgage rates via a news article, radio announcement, tv commercial and/or friend of a friend.

Explaining to consumers that those rates were not obtainable for the general public was like telling a 3 year old that Christmas and Easter are religious holidays. They just didn’t get it.

Today was another great example when the mortgage bond market succumbed to the truisms that dictate financial markets over the long-term. Mortgage professionals and investors across the country saw the rapid deterioration of mortgage bond pricing that has not been seen for years.

What does that mean for the consumer?

The cost of borrowing a home loan rose by nearly 0.750% in one day!

You heard that right. Mortgage rates rose by nearly 0.750% today.

Talking about being hit be a curve ball. Although we have been alluding to this day for weeks, it was a surprise to see the pace at which the mortgage market crumbled.

Even with the facts of the day being a part of history, clients still don’t want to believe that today’s activity has crippled there chance of a 4% mortgage rate.

If perception is reality and reality is perception, how do you know the proper way to view the photo? Who do you turn to get clarity on your perception of reality?

Weekly Blog Update for the Week Ending May 15th

This is a summary of my newest blog entries from My Mortgage Blog. Please enjoy!

Publish Date: May 15, 2009
Mortgage Lending Starts To Show Signs Of A Thaw
Excerpt: Getting approved for a home loan isn’t getting easier, but it doesn’t appear to be getting much more difficult, either. In its quarterly survey to member banks, the Federal Reserve asked…

Publish Date: May 14, 2009
Home Affordability Increases On Weak Retail Sales Data
Excerpt: Home affordability improved again Wednesday after the government reported worse-than-expected results for April’s Retail Sales report. Mortgage rates edged lower for the third consecutive day. The impetus for the rate rally this week may…

Publish Date: May 13, 2009
For The Second Month In A Row, Foreclosures Are Concentrated In 3 States
Excerpt: For the second month in a row, the country’s foreclosure activity was dominated by a small number of states. As shown by the latest stats from RealtyTrac.com, more than half of the…

Publish Date: May 12, 2009
With Mortgage Rates, You Can’t Shop For Good Luck
Excerpt: After a series of increases starting April 30, mortgage rates finally took a dip Monday.  It was a welcome surprise for home buyers that went under contract over the weekend. …

Publish Date: May 11, 2009
What’s Ahead For Mortgage Rates This Week : May 11, 2009
Excerpt: Mortgage markets hit their worst levels since March last week, sending mortgage rates higher for the second week in a row. Today’s conforming mortgage rates are much higher than from the registered…

YOU Magazine courtesy of Benchmark Mortgage: The Barath Group