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?