Many people who got pre-approvals in the last few months are now “highly motivated to get out and bid on homes,” saysMBABC President, Joe Santos.
The reason? Santos says people are worried about losing their ultra-low pre-approved interest rates, and/or missing out on the dip in real estate prices. (Five to six weeks ago lenders were offering 5-year pre-approvals at 3.79%. Today, rates average in the 4.35% range.)
As a result, thousands of pre-approvals have been converting into live deals before they expire. This, in turn, has led to underwriting delays at several lenders.
The MBABC says the volume increase has been “quite dramatic” and–while not declaring an end to the real estate recession–it said: “it is clear (the downturn) may be much shorter than thought 6 months ago.”