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So we're within about 3 weeks of closing and we have not locked in a rate yet. We're doing a plain vanilla 30 year fixed, adn the rates we're flirting with are at best 5.0 and 5.325. Each eight of a point works out to about $20 a month difference - wondering how much we can afford to watch and wait, or if we should just grab 5.25 and roll with it. Any advice?
We are in the most volatile market our industry has ever seen.
Even Bernancke did not dispute on the Hill recently that rates are "artificially low."
How upset will you be if the rates go up to 5.5% or 5.75%?
I can tell you that the Mortgage Backed Securities closed with an improvement of .125 in points (not rate) on Friday. Every day next week we have a report that interest rate markets will watch very close. The following week is no slouch either, with the mother of all reports, unemployment, coming out on August 7.
You've already watched, waited and missed. Last Wednesday offered the best rates we have seen in two months. It's human nature to want the best rate. But I think it's time to ask yourself how upset would you be if the rate went further up. If it's going to cost you sleep, lock. I always tell my clients that when floating brings on the insomnia, it's time to lock. People pay 1000's of dollars to cure sleep disorders, locking is cheap by comparison.
But you do know, the minute you lock, they will go down?
Thanks. I guess those scenarios would make me quite cranky. Happily, we are not at an insomnia-producing threshhold. Think the window is closing, though.
Rates today were in the 5.00% to 5.25% range based on applicants credit score, loan to value and what they wish to pay in costs. Keep in mind, getting a mortgage is like buying anything else, you can pay more and get a lower rate, or pay less and get a higher rate.
Lenders rate sheets today started at 4.5% and went to almost 7% for 30 year fixed rates.
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