If you listened to my advice last week, I probably cost you an eight of a percent on rate, meaning that if you held out until today, your rate would be .125% less than last week. It is important to note that I almost am always biased towards locking rates. Inflation is still rearing its ugly head and the bogeyman IS around each corner.
Should home buyers lock or float their interest rate?
It's important that you read my full report; I can sometimes get long-winded when I answer those two
questions. I mean, a report about mortgage rates ain't as
sexy as Uma Thurman, right? Sometimes, when I'm reiterating my advice,
I rely on other respected professionals' opinion, to reinforce what I'm
saying. My opinion changes as often as the market changes so you have
to keep coming back
I'll cut to the chase:
If you're buying a home , I think you should cautiously float the mortgage rate, right now. Here's why: The economic figures are weak and the unrest in Pakistan has investors buying fixed-income investments like mortgage-backed securities. That drives mortgage rates lower. That could turn on a dime so it is important for you to check in daily. I'll be shocked if I don't change to a lock recommendation before next week is out.
If mortgage rates are headed lower, why should you refinance now instead of waiting? Look at what we said two weeks ago; we all think that the rising commodities prices (READ: Oil) are putting pressure on the prices of goods and services- that could mean stagflation. Stagflation leads to higher interest rates. While we're getting a little gift in the short-term rates could be higher in 3-6 months than they are today.
If oil keeps flirting with $100/barrel, the threat of higher rates will be omnipresent. Get while the getting is still good if you're planning to refinance.
Home buyers: Cautiously Float
Home owners: Refinance Today
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