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A question for some of your mortgage pros no here (maybe it's in your best interest to sell morts at a higher rate, but let's assume you're advising a family member): Based on QE3, where do you think rates on a 30 yr fixed will bottom out in the next 3-5 months? I'm trying to figure out when I should lock in a rate on a Feb closing timeframe.
Thanks!
A question for some of your mortgage pros no here (maybe it's in your best interest to sell morts at a higher rate, but let's assume you're advising a family member): Based on QE3, where do you think rates on a 30 yr fixed will bottom out in the next 3-5 months? I'm trying to figure out when I should lock in a rate on a Feb closing timeframe.
Thanks!
If everything is well(credit, down payment) etc then you can wait until next year to lock-in.
US will be heading into recession early next year and its best to wait until then.
Really? Considering that you're looking at interest rates as low as 2.8% right now, the potential savings by waiting a few extra months are trivial. Personally, I think you would be a complete knuckle-dragging idiot to wait and try and time this market. Who knows what kind of inflationary pressures could kick in between now and then?
cpg is right. Lock now *BUT* READ the mortgage agreement you will be signing up for first and look for gotchas. Look for prepayment penalties, egregious default penalties, and so on. After the tightening up from the last debacle, I'd have to think long and hard before signing a mortgage.
One other thing - if the mortgage is signed, the mortgagee needs to keep EVERY SINGLE document of payment for the duration of the mortgage and until the release of mortgage is recorded at the courthouse.
A question for some of your mortgage pros no here (maybe it's in your best interest to sell morts at a higher rate, but let's assume you're advising a family member): Based on QE3, where do you think rates on a 30 yr fixed will bottom out in the next 3-5 months? I'm trying to figure out when I should lock in a rate on a Feb closing timeframe.
Thanks!
My guess is in the 0.25 to 0.5% lower than where they are now. There is absolutely no indication for them to go up. I am not talking about a day to day fluctuation, rather the trend. If this much difference makes sense to you, then take the risk. One year from now? That is a different question. Many would say take what you get it is historically low rate bla bla and they have been saying for what, two to three years?
I would say waiting for few month and perhaps increasing your down payment is a wise decison. But if you have the down payment, the credit, and the house you like, buy it. There is a lot of uncertainty to account for. Don't just look at a few percentage point interest rate change. If the house in the area goes up even a small percentage, all the saving you are trying to make will disapear. Get the bigger picture in your area!
rates will stay home probably until 2014. But if the economy is doing better, ppl will move money from 10-year note to stock market will means the Mortgage rates will go a little higher.
As a mortgage professional who deals with rate fluctuations day-in, day-out, there is no way to "time" the market. Rates are so low now that it is silly to wait for a 1/8 pt. drop which may or may not come. Bird in hand as they say.
Last edited by SeaDeezKnots; 09-19-2012 at 09:25 PM..
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