How long will these rates stay low? (30 year fixed, rate, refinance)

[BK2Westchester]

can any mortgage experts here throw out opinions on how long these rates will stay this low and whether they will go down more or go up?

whats your 2008 prediction?

[KevK]

Originally Posted by BK2Westchester

can any mortgage experts here throw out opinions on how long these rates will stay this low and whether they will go down more or go up?

whats your 2008 prediction?

They have a ways to fall yet. I expect to see 30 year mortgages in the 4.75 range and 15 years perhaps down to 4.00 or even 3.75% by the end of summer the Fed is pumping loads of cash into the banks and they are desparate to lend it.

[BK2Westchester]

thanks- anyone else care to chime in with a prediction?

[renriq02]

depends...if you think the market will continue to drop...then yes the rates will fall. If the market will go up then the rates will go up.

Rates will probably drop huge once more then start going up.
Most of the companies will start reporting their 4th quarter losses today/this week.

There were a lot of refinances going on this month so that will generate profits in the mortgage industry. This will bring the market up next quarter.

[BK2Westchester]

thats what i keep hearing, that it will go down alot more b4 it goes up.

I'm trying to gauge when to hit the market. I have my deposit ready. I have my lender ready (Wamu) who does coop loans. I'm on month to month with my current rental.

However, I am in no rush and don't want to miss out on a great rate- but if it spikes.....

this is pretty stressful

[renriq02]

Check out Wells Fargo...they do CoOp loans.

Or

Talk to some local broker

Originally Posted by BK2Westchester

thats what i keep hearing, that it will go down alot more b4 it goes up.

I'm trying to gauge when to hit the market. I have my deposit ready. I have my lender ready (Wamu) who does coop loans. I'm on month to month with my current rental.

However, I am in no rush and don't want to miss out on a great rate- but if it spikes.....

this is pretty stressful

[BK2Westchester]

I already have a lender (wamu), thanks

my issue is whether I should hold out till the summer under the assumption that the rates on a 30 year fixed will go under 5%.

[renriq02]

I guess I would have to explain myself in why I'm telling you to choose another lender.

This is how I receive ratesheets daily....
Let's suppose the rates went down...

Day 1
Bank A 6% Par Rate
Bank B 6.125% Par Rate
WAMU 5.875% Par Rate

Day 2
Bank A 6.125% Par Rate
Bank B 6.25% Par Rate
WAMU 6.125% Par Rate

Day 3
Bank A 5.875% Par Rate
Bank B 5.750% Par Rate
WAMU 6.125% Par Rate

My point is that every lender offers different rates on different days.
One day WAMU might offer the best rates...
Another day EVEN THOUGH the rates GO DOWN...WAMU might still raise their rates or leave it 'as is'.

This is why a broker checks his rate sheets daily to see who is offering the most competitive rate. Some lenders ONLY change their rates in the morning. Some lenders change their rates 4-5 times per day, and they usually offer the best market pricing.

How will this affect you?

9AM - Market surges 300 points in the first hour.
(rates go up)
11AM - Lender raises their rates to 6%
2pm - News of home recession brings down the market 500 points making the day -200 points.
2:15pm Lender leaves their rates at 6% (They only update once a day...especially when the market goes down. If it goes up they will update it)

If the market goes up in the afternoon then MOST lenders will update their rates. They dont want to lose money.

What happens when you work with only 1lender?
You're at the mercy of their policy pricing.
You wont know if you received a competitive rate for 'that day' when you locked.

We dont know what your rate is...and I'm sure you dont know the policy pricing with your lender. Only the top executives know this, but most brokers/hybrid lenders can still tell by their patterns.

You MUST shop on the day of your LOCK. Everday is a different day, and some lenders may have better rates than the other.

[darkblue]

And you have to lose lot of work hours to keep track of rates eveyr day and keep update your different lenders. Stressfull though. Keeping updated with only one lender and keeping track of rates every day itself more stressful.

[renriq02]

this is why a lot of brokers use a pricing engine.....does all the work for you.