New Lender Refrain: “These Rates Won’t WILL Last!” or, Three Buyer Worries
With home prices now rebounding in many markets nationally, prospective Buyers these days usually have two main worries: 1) that prices will rise (further), making a purchase unaffordable — or at least more expensive; and 2) that interest rates will rise . . . making a purchase unaffordable — or at least more expensive (assuming they’re planning to finance a majority of their purchase, which in practice means 
most Buyers).
This year, of course, many Buyers in the Twin Cities and elsewhere have a third worry: that limited inventory will keep them from finding what they want — or force them to compete for what they do (see, Worry #1).
Low Rates as Far as the Eye Can See
Fortunately, based on what I’m hearing lately from several veteran lenders I work with, the risk of imminently rising rates — a concern as recently as this Spring — seems to be rapidly receding.
So, there’s no need for anxious Buyers to race to lock in their rates, or otherwise jump into the market before they’re ready.
Which just leaves Buyer Worry #2 and (especially) Buyer Worry #3.
Guarding Against Complacency
Is lender sentiment ever a contrarian indicator?
That is, when there’s a consensus amongst lenders about what’s going to happen . . . is it usually wrong?
In my experience, that’s certainly possible.
Lots of lenders have been screaming seemingly forever that “these rates won’t last!” (or the equivalent).
So, when the new refrain is effectively, “These rates WILL last!,” it warrants a healthy dose of skepticism (if not wariness).
