The Impact of Silicon Valley Bank’s Failure On Mortgage Interest Rates
Silicon Valley Bank, one of the largest banks in the United States, recently announced that it will be shutting down. This news has caused a ripple effect in the mortgage market, and many people are wondering what this means for interest rates. In this blog post, we'll look at how Silicon Valley Bank's failure could affect mortgage interest rates going forward.
The Impact on Mortgage Interest Rates
Silicon Valley Bank is one of the biggest players in the US mortgage market. With their departure, there is now less competition in the marketplace, which could result in higher interest rates for borrowers. While other lenders may try to fill the gap left by Silicon Valley Bank, it is likely that they won't be able to do so immediately or adequately enough to keep rates from rising.
However, as a result, average mortgage rates, which climbed as high as 7.05% last week, fell to a low of under 6.75% on Friday 3/17.
For home buyers who were planning on taking out a loan, this news means you need to shop around for a lender. Shopping around and doing your research is key if you want to get the best rate possible.
The benefit of being a “mortgage broker”, means we have more than one bank to find the best loans for every situation. Unlike the big banks and single lenders whose hands are tied with only one source. Not to mention outstanding,personalized customer service that big banks just don’t have.
It's also important to make sure your credit score is up-to-date and in good shape before you apply for a loan. Lenders pay attention to credit scores when deciding whether or not they should approve someone for a loan and what kind of terms they should offer them; having a good credit score can help ensure that you get the best deal possible on your mortgage.
Remember that while mortgage interest rate changes may affect someone's monthly payments (or total loan amount), they're just one factor of many that should be taken into consideration when shopping for a home or refinancing an existing loan. Other factors such as credit score, debt-to-income ratio, and loan type will also play a role in securing favorable terms for anyone shopping for a new home or refinancing an existing loan.
Feel free to reach out at any time for more informaiton and specifics on how this affects you and your home loan planning.
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* Specific loan program availability and requirements may vary. Please get in touch with the mortgage advisor for more information.