A young father volunteered to coach his son’s basketball team. Every member of his young team was playing the sport for the first time. He concentrated on teaching the basics; dribble under control, pass accurately and aim for your target when shooting. During their first game, the team entered the final seconds trailing by one point. The coach instructed his players to be patient and take the best shot. His players nodded in agreement and took the court for the final play. The clock started, the players passed the ball very well and stayed patient. The clock continued to tick, tick, tick. The players continued to pass, pass, pass. The parents, in their excitement, were cheering at the top of their lungs. The coach soon realized that time was almost expired, so he started to scream “Shoot the ball! Shoot the ball!” No one did. His voice was lost amidst the noise and the game ended – a one point defeat.
The frustrated coach gathered his players around and asked why no one shot the ball. One player answered that he never had the best shot. Another said that he was waiting for a better shot. The coach’s son asked “how can we tell what the best shot is?” The coach patiently explained that when you only have a certain amount of time, the best shot is the one that becomes available. Finally understanding the concept, one player asked if they could go out on the court and do it again. ”No”, said the coach, “that time is over.”
Lesson learned.
Interestingly enough, we are seeing a similar circumstance in the lending industry. Media reports that rates were headed to 4.5% or lower stopped many homeowners in their tracks from pursuing wonderful refinance opportunities. Why? They’re looking for a better shot. The demand for mortgage applications reached a five year high at the end of December. However, many are still passing. Those who ignored the media noise were able to secure rates as low as 4.65%. Since that time, the market has returned to increased daily fluctuations. Is it wise to continue passing up the current reality for a better shot? Just be aware that when this window of opportunity expires, you may be left with no shot.
With 2009 upon us, I wanted to pass along some interesting market information, courtesy of Barry Habib. Barry is the founder of the Mortgage Market Guide and frequently appears on both Fox Business and CNBC. There an accounting scenario called “Mark to Market” that most reporters just do not understand. Barry explains how this practice created the present market conditions – and what to be watching for in 2009.
WATCH MR. HABIB BY CLICKING HERE
Happy New Year to one and all! For those not waiting for a better shot, refinance information is available HERE.
Greg Matson – Vice President
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