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Are the mortgage rates going to lower more. Anyone knows?

Would it be better to close on a loan right now based on the mortgage rates or to wait to get a lower rate.?Please advise.
zmayes

  • July 07 2012 - Southfield
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Answers (3)

Profile picture for blank screen EXILED
Read the thread Rates-on-the-move-again.

That gives some good insight regarding what has happened with rates, and what might happen.

There is not much more room to move down with the investment rates offered to those buying MBS and the paperwork costs for originating a loan and servicing a loan.

Besides, we just saw a downswing Friday from the low Job's report numbers, so likely that "over swing" will be correcting this coming week after markets reopen Monday.

If one is in the process of getting a loan and hasn't locked their rates presently, they are being "foolish".

Yes, I do expect to see 3.25% 30 yr fixed rate loans sometime this summer, but not for most people, and not for more than one day.  Only due to market swings, and if one isn't prepared to lock when it comes, they will miss it.
  • July 07 2012
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Profile picture for SoCal Engr
There was a time when everyone was convinced that 5% was the bottom. Then, 4% become the new 5%. Now? 3.5%. So, the short answer is "no one knows, but there's not much more room in the basement".

The question you should be asking isn't "how much lower might it go?" The question should be "does the rate/payment work for my financial plans?" Identify where you need the rate to be to make the deal work, and then pull the trigger if everything makes sense.

If you're still wondering about rates, the question isn't "how much lower might it go?", but "how much lower does it need to go to make it worth the risk of not closing now?" In my experience, the real-world impact of a few eight's just isn't enough to worry about.
  • July 07 2012
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We never can say for sure what rates are going to do in the future. If we could, we would all be very wealthy. The best way for you to weigh your own risk is look at the mortgage payment at today's rate, and compare that with the payment with a rate that is .125% and .25% lower. Is there a big enough savings for you to risk the payment at today's rate. If yes, then roll the dice. One thing to keep in mind though, rates often rise faster than they fall. Hope this helps.
  • July 07 2012
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