Time to lock in rates, now? (loan, interest rate, credit, mortgage rates)

[acegolfer]

Mortgage rates will drop tens of basis points today after Fed's announcement.

According to bankrate.com, the 30-yr FRM rate is hovering around 5.10% - 5.30% the last 30 days. I expect it to be less than 5.000% in the near future.

[westchester]

will go down to..................my guess you will see 4.25 in the next couple of weeks.............

[dad2jules]

I locked a few clients last night at 4.49% with no discount or origination just generic closing costs. 750+ credit, $350k + loan (up to $417k), 59% maximum LTV.

[VictorBurek]

I would definitely not want to guess on rates. Rates today where around 4.375 to 4.5%. Most lender aggressively repriced for the worse due to huge amount of locks. Lenders cannot handle all the business, so what is the one thing they can do to slow down the volume? Increase rates. I would suggest everyone that is waiting to refi, get moving now. Yes, rates can go lower, but much more room above to go higher. If you can lock around 4.5%, dont wait and hope for 4.25. Pigs get fat, hogs get slaughtered, so dont get to greedy hoping for lower rates cause you might miss out on the lowest rates in history

[aneftp]

Originally Posted by VictorBurek

I would definitely not want to guess on rates. Rates today where around 4.375 to 4.5%. Most lender aggressively repriced for the worse due to huge amount of locks. Lenders cannot handle all the business, so what is the one thing they can do to slow down the volume? Increase rates. I would suggest everyone that is waiting to refi, get moving now. Yes, rates can go lower, but much more room above to go higher. If you can lock around 4.5%, dont wait and hope for 4.25. Pigs get fat, hogs get slaughtered, so dont get to greedy hoping for lower rates cause you might miss out on the lowest rates in history

Excellent post. I think anything around 4.5%-4.875 with zero points. People tend to have this mob mentality. Plus the government isn't helping by doing all this "shadow banking" so people tend to sit on the sidelines and wait for the next big deal.

What people do not understand is mortgage rates simply can't be this low forever. Everyone (at least the economists) all know when the economy is stabilized, there will be massive inflation. Banks simply cannot give out all of these 4% interest rates on long term debt (mortgage) and have to deal with the Fed rate increasing to 5-8% in the next few years instead of its 0-0.25%.

[AndrewSoss]

Originally Posted by dad2jules

I locked a few clients last night at 4.49% with no discount or origination just generic closing costs. 750+ credit, $350k + loan (up to $417k), 59% maximum LTV.

^^Suntrust?
They actually raised rates midday...think they had a little capacity issue =)
Glad to see you got some of those...they completely purchased the market today.

[dad2jules]

Originally Posted by AndrewSoss

^^Suntrust?
They actually raised rates midday...think they had a little capacity issue =)
Glad to see you got some of those...they completely purchased the market today.

Yes, got 3 in Wednesday night between the last reprice and close of lock desk at 7, wish they would keep it open longer. They bought the market then retreated like a wounded animal. Their 7 day turn times should be back up to 17 by the middle of next week, but luckily for me I got them all sent in today so hopefully I'll be ahead of the rush.

[bls8195]

about 2 weeks ago I got locked it at 5%, and I am pretty happy with that.

[Snafu]

I locked at 4.25% and paid one point - am set to close next week. It is well worth it to pay a little extra up front - it'll save thousands over the life of the loan. I keep hearing that they may go lower, but this rate suits me just fine.

[NJ987654]

YES, YES, YES.

No one knows if rates will go down more or not. you can't figure that out. There is no precedent for this. The government has never spent as much as they are spending now. This is historic lows.

Analogy... if you were going to buy something that normally costs $100, you went in the store and saw it was only $30 today, would you buy it... or would wonder if the price was going to go down to $28 the next week???? Of course you'd buy it... it is crazy low price, who knows, maybe it could come down a little more, but you might miss an incredible opportunity if you don't buy it.

Don't time the market. It won't work for stocks. It's doesn't work for rates. All of the "indicators" (10 year treasury, housing starts, etc) don't work right now. This is not a normal market because of the external influence of the government spending.

LOCK IN NOW.