businessman-with-laptop-FB-Crop-300x198This week’s Mortgage Market Update explores cash buyers vs mortgage buyers and whether the new pre-underwriting process helps even the playing field. Additionally, we’ll look at mortgage rate trends and see where they could be headed in the near future.



Mortgage Rates At-A-Glance

  • Currently Trending: Neutral to Higher
  • 7-Day Forcast: Neutral
  • Volatility: High

Will the new lending trend known as “pre-underwriting” help buyers needing financing compete with cash buyers?

Mentioned in NAR’s Realtor Magazine, the new trend among mortgage borrowers appears to be getting lenders to “pre-underwrite” their home loans – supposedly as a way of competing with cash buyers. Having a lender “pre-underwrite” a file – which some believe puts the loan application through a more thorough vetting process before a buyer enters into a contract – is done to make offers with a mortgage as appealing to a seller as cash offers. But does it really work?

The best way to get an answer to that question is to read the article, and then discuss it with the mortgage professional that shared this report with you. They’ll be able to give you the truth behind this concept, and discuss the pros and cons.

Rates Forecast

This week the MBS (mortgage-backed securities) market had a full plate of economic reports to deal with, as well as continued concerns in the Ukraine and China. There still is not much that points to MBS improvement and lower rates on the horizon – instead we will likely see MBS trade sidways through the week, and see mortgage rates remain flat. This is good news in the sense that rates are unlikely to go higher. But if you’re thinking of locking in a mortgage rate now, don’t hesitate much longer. Volatility remains high, so increases could occur toward the beginning of April.

For more information on mortgage rates, contact a reputable lender serving your area. For Texas home buyers, refinancers and those just considering the options, Kelly Decker and his team of mortgage professionals are ready to answer your questions and provide you with a free rate quote. Call 972-591-3097 today to get started!