The interesting thing about a real estate blog is that when the market is slow, it is difficult to find things to blog about but when it's hot, it is difficult to find time to write.
Since returning from my mini-Easter vacation, my phone has been ringing off the hook and I've had appointments, usually more than one, each and every day. I've had three listing presentations, worked with 4 new buyers, showed property to 2 long time buyers and participated in four inspections. Throw in City Living Sunday and a couple of committee meetings and whew! No wonder I'm tired.
Property is selling in Rochester. But there are some unusual circumstances going on with mortgage lenders. Mortgage rates are fluctuating almost as much as the spring temperatures! For example, Monday 30 year conventional mortgages were going for 5.62 percent interest but on Tuesday, they were up to 6.125. So for a mortgage of $130,000 that is a swing of approximately $42.00 a month or more than $15,000 over the life of the loan. It is very difficult for a buyer to know how much of a house they qualify for when interest rates swing from day to day.
The other big news is that mortgages are taking much more time to close. Just last year, it was not unheard of for a house to close in four weeks. It is now taking that long in some cases just to get mortgage commitment. Some banks will give quicker turnaround but it seems they are charging premium prices. Several brokers are suggesting that we write contracts with 60 days till closing to avoid blown deadlines.