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The agent-lender relationship: how to leverage one another’s expertise for your clients

by Jason Porterfield

A question of rates

Lenders and agents in the Chicago area are in a good position to develop those business relationships, as the local housing market continues its recovery amid tight inventory and rising prices.

Cheap money is still out there for those who can get approved, helping to lift the housing and lending industries. Mortgage rates remain at or near record lows, much like they have for years, with only one increase taking place since 2006. For the week ending Aug. 25, 30-year fixed-rate mortgages averaged 3.43 percent, according to Freddie Mac. That is down from 3.84 percent a year ago. Meanwhile, 15-year FRMs averaged 2.74 percent, compared to 3.06 percent in 2015. Five-year Treasury-indexed hybrid adjustable-rate mortgages have also declined, and are down from 2.90 to 2.75 percent.

“Interest rates are at near all-time lows,” Slater says. “They’ve helped the mortgage and housing industries flourish over the past 18 months. We all know the trends, and we expect those rates to rise in the near future.”

Vlamis sees the low interest rates as being closely tied to global trends. “Do not expect rates to go up unless the worldwide economy gets going again,” he said. “They want to raise interest rates, but they do not have the economic data to justify it. It’s an amazing thing.”

Until that happens, the low rates will continue to offer incentive for people to buy homes, which means that agents and lenders will have plenty of opportunities to streamline their processes and strengthen their professional relationships.


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