Mortgage Rates: Are We Witnessing a Loan Pricing War?
ByPosted To: Mortgage Rate Watch
Call me crazy but I think we've been witnessing a lender price war in the primary mortgage market. Yesterday we talked about lenders "buying the market". ( HERE is an explanation of "buying the market"). I originally described this behavior as "mixed", some lenders were better while others were worse, but then I looked back at my rate tracking spreadsheet and noticed a rotating pattern of aggressive pricing strategies. Of the majors, Wells and GMAC were buying the market last month, Chase and Bank of America had their moment in the sun, and right now I believe Citi might be trying to buy the market. It's almost like they've been taking turns…. It makes sense though. Certain lenders have significantly longer loan processing turn times than others,…(read more)