Mortgage brokers say recent rate drop means it’s time to refinance or buy a home



SAN DIEGO (KGTV) – Mortgage brokers spent last week calling and emailing customers in San Diego, telling people it's time to buy.

"Every time I see a rate drop like that, my first reaction is to call everyone as fast as I can," says agent Scott Davenport. "I try to get as many people who have been on that fence to jump on it as fast as they can."

The frenzy began when mortgage rates fell by .22% on March 27, to 4.06% on a 30-year fixed-rate mortgage.

It was the biggest drop in the rates of a single week in more than a decade.

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"That could mean a saving of hundreds of dollars a month," says Davenport. "Or even hundreds of thousands of dollars over the course of a 30-year mortgage."

Analysts say the drop came after the Federal Reserve said it was concerned about the slowdown in the economy. It caused concern among investors, which led to good news for buyers.

"It will not last," says Davenport. "You never know where the market will go, I hope the rates stay low during the summer, but at the same time, I do not expect them to remain low for long."

Rates reached record lows in 2012, around 3%, after the recession and the bursting of the housing bubble. Davenport says it does not see conditions that generate such low rates in the short term. That is why he is telling people to take advantage of the current rate close to 4% now.

It says that anyone who is thinking of buying or refinancing a mortgage should contact their broker now.

"Run the numbers, it's something we do all the time," he says. "We can see if there is a benefit for a refinancing with him, with the reduction of the rate for you at this time, or if you are looking to buy a house, get a prequalification first."


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