For mortgage brokers, rate volatility is presenting its fair share of hurdles – not least when it comes to locking in refinances. While rates increased last week, they’ve fallen precipitously since earlier this year, and many borrowers are open to biding their time to see where they might eventually land.
That means a big challenge is being able to get the refi closed in time before rates continue to fall, according to Mackenzie Barrett (pictured top), chief sales officer at Safetrust Mortgage.
He told Mortgage Professional America that rate fluctuations during the year to date had given brokers little certainty about when things might stabilize. “You sell one thing one day and then within the next 48 to 72 hours, you’re looking at a different story – whether it’s within [borrowers’] favor or outside of their favor,” he said. “That poses a challenge.”
Top of mind at Safetrust in that climate has been prioritizing a streamlined process and clear communication, he said, to make borrowers’ mortgage journey as smooth as possible. “That way, we can minimize the time it takes to get them closed,” he said. “So that’s been our focus as far as the refinances go, in dealing with the fluctuating market. It’s just been very process oriented.”
What should mortgage professionals be prioritizing?
Rates may have posted a big drop since last year, but they remain well above the lows of the COVID-19 pandemic – and with plenty of borrowers still facing affordability and qualification struggles, Barrett said as detailed a conversation as possible about their financial circumstances and goals is of paramount importance.