Mortgage rates, how low can we go?

We actually locked a batch of refis in below 3% during that first week of March. With dogshit slow as crap lenders who have low service levels, so far only a few have actually closed/funded. Right now a batch of them is going through "we need updated paystubs and other paperwork." OK, why? "Because the paperwork we have is over a month old." Yes, because your underwriting takes forever, they were current as of when we submitted them. "OK, still need updated paystubs, bank statements, etc." I did tell folks upfront it was going to be rough (I didn't know it was going to be THIS rough), and give them choices between price leaders and reasonable price/service/etc mix, almost all picked the rate whore option, many are frustrated right now.

Thankfully, I didn't send any of my buyers to those places. The purchase files may not have that rock bottom rate, but still pretty sexy, and we are still fulfilling contractual obligations and closing on time (so you don't, you know, lose the entire house and an earnest money deposit to boot), specifically because we brokered them to reliable purchase focused lenders.

As a consumer it's not necessarily easy to tell them apart -- is a refi sweatshop that takes 2-3 months to close (which a seller generally will not wait for), or serious and purchase focused? Keep in mind it's pointless to ask, since the call center guy is just going to tell you what you want to hear.

Just something to keep in mind. The high v low speed and service level gap for that 0.125% or 0.25% to rate has never been higher than it is now.

/r/RealEstate Thread