‘Volatility is going to lead’ post-election mortgage market, executive says
Windows of lower rates will come, Weinberg said, but nobody can say how long they will last.
“They could be minutes, they could be hours, they could be days, they could be weeks,” Weinberg said. “Overall, I think the trend is going to be to higher rates. But with that said, there are going to be windows of lower rates and volatility is going to lead this.”
Fairview isn’t leveraged right now and funds loans with cash, so it doesn’t have to hedge, Weinberg said. For lenders that do, he said, the market is a problem.
“The mortgage market is going to be super challenging because I don’t know how you hedge,” Weinberg said. “If you’re closing a loan, that loan that you close, if you haven’t already pre-sold it, if you’re taking any interest rate risk, you’re done.”
Waiting out a move no longer works, he said. Locking the wrong way can turn a profitable loan into a big loss.
