Short Week Brings Fleeting Mortgage Rate Lock Opportunities

January 21, 2011

Daily Mortgage Updates

Doug Katz Mortgage Broker 21 January 2011 – So this week, I had a bit of writer’s block. I sat and thought about how I can best describe the current level of lunacy and frustration in the mortgage market. Then, like a beam from Heaven it came to me in the memories of my favorite Warner Brother’s cartoons and something affecting many ratewatchers that I am calling Wile E. Coyote Syndrome.

This malady suffered a good number of my own clients is characterized by transformation into a ravenous canine futily seeking to catch the uncatchable. They have their Acme rate trap configured and the stage is set. For a fleeting instant it looks like they might get their prey, but then in a cloud of dust and a taunting “meep, meep,” the rate that they are chasing disappears and they smash into a wall.

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Monday of this week was quiet after some aggressive Friday pricing presented a great opportunity to secure the best rates for several weeks. This was not to last, however, as positive existing home sales and a favorable four week moving average for employment numbers spelled higher borrowing costs. In a veritable instant we were back up at the recent higher mortgage rate levels and many a Wile E. Coyote stricken borrower returned to the drawing board to catch the Rate Road Runner the next time he passes by.

My mortgage rate lock advice for my clients is unchanged and still based heavily in defensive thinking. IF closing in 7 days or less LOCK. If closing in 7 to 30 days, I would suggest FLOATING with extreme caution. With this much volatility, I would LOCK on any improvements as well as any major upward repricing. You do not want to miss the boat.

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About Doug Katz

As the Senior Mortgage Banker and Sales Manager for Chicago Bancorp, Doug not only originates loans for his personal business, but also oversees affiliations with banks and other financial institutions that depend on Chicago Bancorp to meet their client’s lending needs. In this role, Doug directs the day-to-day mortgage sales operations of over 25 branches in a multitude of Chicagoland’s diverse communities. He brings to these relationships a wealth of industry experience and a dedication to an exceptional client experience that has established Chicago Bancorp as Chicago’s pre-eminent mortgage solution providers. Prior to joining Chicago Bancorp, Doug attended and graduated from West Point. Upon graduation, he was commissioned as an officer in the United States Army Artillery, where served 5 years in numerous roles and in various deployments include service in Kuwait. In addition to his Bachelor’s Degree from West Point, Doug holds an M.B.A. from Loyola University Chicago, where he was also inducted into the Beta Gamma Sigma Honor Society. He also served as President for the West Point Society of Chicago from 2003 to 2005 and still serves on the Board of Directors. When not working, he spends his time with his wife and three children in their hometown of Oak Park, as well as pursuing his passions for fitness, cooking and the banjo. Doug can be reached by phone at 312.738.6079, by email at, on his own blogs, and Vet Money Matters. He's also on LinkedIn.

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