where are mortgage rates headed
Started by memaria
almost 18 years ago
Posts: 2
Member since: Feb 2008
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Lots of factors to consider.. I can tell you that the rates are very volatile right now. They could go up ALOT or down a LITTLE over the course of 6 months. This week for instance, you should be able to get a 5.75% fixed 30 on a condo which is a great rate historically speaking.
You need to also consider the points you will get charged for an extended lockin. I am assuming closing is 6 months away or more. Typically, a lender will give you a 30-60 day lockin at no extra points. Anything beyond that and they will probably charge you points to lock your rate further than that.
My story is this:
- I went into contract in January with intention of closing in May on new construction condo. Rates were 5.5% around then. I opted out of the extended lockin fee.
- When I was within 60 days from closing, I started shopping rates again and found that they were up to 6.5%!
- I beat myself up for a few weeks over the fact that I didnt lockin in January.
- Luckily, rates came back down 2 weeks ago and I locked in at 5.75% without paying any extended lockin points. Overall, I think this worked out in my favor for my specific situation.
** The opposite side of the coin very easily could have came up - Let's say that rates stayed at 6.5% and with my situation - Then I would have made the better choice if I had locked into 5.5% and paid a point to extend the lockin period. This is because I plan to stay in my home for 5 years .
Its confusing and can really drive you up the walls trying to figure out what to do.. I am happy I am now locked in at a good rate and can stop hawking mortgage boards to figure out wtf is going on!
Good luck
from which bank can you get a 5.75% rate for fixed 30 years?
chase
Odds are that the long end of the curve will continue to rise as the markets continue to fear inflation. My crystal ball is as a foggy as the next guys, but conforming fixed rates are still historically very low. If you like it, buy it.
Rich Bouchner
www.CommodoreMortgage.com
Rates are so volatile these days. We offer long term locks up to 2 years and you get a free float down within 60 days of closing if rates drop. This is the safest way to ensure your rates will be the lowest posible.
ANYONE HAVE QUESTIONS ABOUT MORTGAGES AND RATES, PLEASE ASK AWAY. OR EMAIL ME AT sunny_hong@countrywide.com.