Recently, I read an article on CNN Money about new home sales rising despite mortgage rates increasing. This CNN Money article is a perfect example of how the so called educated and government officials do not have a grasp on what is really occurring in the market.
Borrowers trying to refinance or obtain a new mortgage for a purchase have been so for the past three months. Banks and lenders have been over burdened and understaffed to handle the amount of requests from the low rates. It's taking many banks to fund loans requests 3 months after originally submitted the loan.
Many banks and lenders have gone as far as trying to make it more difficult to submit files. I have seen banks and lenders send files back for items that never were an issue previously. It's a way to alleviate the log jam without saying, "sorry clients, we're just to busy to handle your loan".
More incredibly, these banks and lenders are not extending rate locks. They know they are unable to handle their present business and client rate locks are expiring even though they have been trying to either refinance or obtain a new mortgage for months. Banks are well aware of this issue and yet they still refuse to offer extended rate locks.
If you have been trying to get a mortgage this year than you know this problem too well. I'm sorry for homeowners that have been unable to benefit from these low rates because their bank didn't properly staff.
I would like to hear your thoughts on this.
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