I just signed a contract on a condo. I close in 5-6 months and I asked my broker if I should lock in and just pay the extension fee and he said the following to me... "Just a little background color on rates. In early Jan rates were at 4.75 at the end of Jan they were at 5.5. By mid Feb they were back at 4.75 and at the end of March they were at 5.375 by mid April they were back at 4.75. Do you... [more]
I just signed a contract on a condo. I close in 5-6 months and I asked my broker if I should lock in and just pay the extension fee and he said the following to me...
"Just a little background color on rates. In early Jan rates were at 4.75 at the end of Jan they were at 5.5. By mid Feb they were back at 4.75 and at the end of March they were at 5.375 by mid April they were back at 4.75.
Do you see the pattern here? The Govt has been buying mortgage backed securities to keep the rates low to stimulate housing and recovery. Every couple of weeks they reduce their spending in hopes that the rpivate sector will kick in and buy the securities. That will not happen until we see real economic stability so expect the govt to kick up the MBS purchasing again and hold rates steady near 5 for quite some time, or at least until we see some real economic growth.
I would say we should still wait it out as a six month lock is real hefty."
What does anyone else fell about this statement? Does anyone have any other advice? Is it better to wait?
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Response by RalphTV
over 17 years ago
Posts: 34
Member since: Feb 2009
Also... does anyone know of a good place to see the latest trends and graphs on interest rates?
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Response by alpine292
over 17 years ago
Posts: 2771
Member since: Jun 2008
try bankrate
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Response by tenemental
over 17 years ago
Posts: 1282
Member since: Sep 2007
MortgageMan has written some very informative posts at urbandigs.com. Maybe you can click through to his site and get his current take.
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Response by 30yrs_RE_20_in_REO
over 17 years ago
Posts: 9913
Member since: Mar 2009
If anyone could truly answer this question, they could wear a diaper to work sucking their right thumb and with the other thumb point it up that's the way interested rates were going and down if that's the way they were going and any bank would give them the corner office and pay them $10 million a year and think it was the best deal they ever made.
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Response by columbiacounty
over 17 years ago
Posts: 12708
Member since: Jan 2009
got to believe they're going up---when and how much is anyone's guess.
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Response by eponymous
over 17 years ago
Posts: 23
Member since: Jan 2007
Thanks for the point to urbandigs.com I'll check that out. What is "bankrate?" Blog? Website? Bank?
We are in contract and plan to close at the end of July - in a matter of days they went from 5.5% to 6% - we're not sure if we should wait a week or to or to just lock in now before they go higher.
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Response by shong
over 17 years ago
Posts: 616
Member since: Apr 2008
Everyone will have their opinions on where rates are going. Truth is that no one knows. They can make calculated guesses but nothings for sure. I always tell my borrowers to look at the rate and the payment. If theyre happy with it then they should lock. Although rates may be in the high 5% range now, thats still a pretty good rate. Of course we all got spoiled when the rates hit the 4% range. But I think those days are gone. If youre content with the rate then lock. If the rate drops the bank can probably re-negotiate the rate for you if the market rallies and rates tank. sunny.hong@bankofamerica.com
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Response by shong
over 17 years ago
Posts: 616
Member since: Apr 2008
And with that being said, I think rates will going back down a little but not anything in the 4% range.
Also... does anyone know of a good place to see the latest trends and graphs on interest rates?
try bankrate
MortgageMan has written some very informative posts at urbandigs.com. Maybe you can click through to his site and get his current take.
If anyone could truly answer this question, they could wear a diaper to work sucking their right thumb and with the other thumb point it up that's the way interested rates were going and down if that's the way they were going and any bank would give them the corner office and pay them $10 million a year and think it was the best deal they ever made.
got to believe they're going up---when and how much is anyone's guess.
Thanks for the point to urbandigs.com I'll check that out. What is "bankrate?" Blog? Website? Bank?
We are in contract and plan to close at the end of July - in a matter of days they went from 5.5% to 6% - we're not sure if we should wait a week or to or to just lock in now before they go higher.
Everyone will have their opinions on where rates are going. Truth is that no one knows. They can make calculated guesses but nothings for sure. I always tell my borrowers to look at the rate and the payment. If theyre happy with it then they should lock. Although rates may be in the high 5% range now, thats still a pretty good rate. Of course we all got spoiled when the rates hit the 4% range. But I think those days are gone. If youre content with the rate then lock. If the rate drops the bank can probably re-negotiate the rate for you if the market rallies and rates tank. sunny.hong@bankofamerica.com
And with that being said, I think rates will going back down a little but not anything in the 4% range.