Their are two kinds of mortgages: New Home & Refinance.
New Home mortgages are a lot trickier (escrow, deadlines, etc..) then refinance. Sure ELOAN may get some new home mortgages, but this market is not the best for an internet offering (in my opinion, of course!) because of all the variables and limitations.
So that leaves refinance, and when rates go up, refinance stops. Witness an article from today's CBS Marketwatch:
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Refinance all but dead
While current data shows refinance represents about a quarter of the mortgage market, higher rates cannot sustain the pace of that sector. "We expect that (25 percent) to decline further in the coming months, and with the further increase in interest rates we've seen over the past few weeks, that'll probably just accelerate that," said Nothaft. "We may see (refinance) decline to only about 10 to 15 percent or somewhere between 10 and 20 percent of the market by the time we reach the fall."
"To put that in perspective, last October when mortgage rates were at their low, two out of three applications were for refinance. So we're going from two out of three last October to maybe only one out of five or one out of 10 this coming October," he said.
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On top of that, I have neighborhood companies that will compete on price and will come to my house to take the loan application, I have to ask you, do you think this company should be worth $1 Billion dollars? They don't even hold the paper!?!
Good luck. |
