Good time?

[wesmantooth]

My wife and I are buying a new house. My question is about when to lock in rates. We initially got a 5.5. 30 year FHA. But we didn't lock in because we didn't have a signed agreement. It went up to 5.75. Then I got the signed agreement, but it was up to 5.875. I know there is no way to tell, but do you all think I should lock this in or is there a good chance it will get lower again. I know the stocks fell today, but the 10 year treasury bill rose. Do you think rates are going to go up again? Thanks.

[RobM]

As with anything pertaining to money, it is pretty much a crap shoot. No mortgage broker I have every known could predict what was going to happen with the rates. It has always been "I think....". You need to lock in where you feel comfortable and deal with the consequences if it goes down and celebrate if it goes up.

[Michigan]

Make sure your dealing with a direct FHA Lender. If your dealing with a broker "in most cases" your going to pay a higher rate which pays the broker on the back.

Go to FHA's web site and see what the prime rate is today and go lock that rate in with your agent. If he's 3 points over prime go elsewhere.

Most important: Know what the facts are, don't expect the guy selling you the used car will show you the duct tape.

[fractional-homes]

Timing the mortgage rate is like timing the stock market. You never know when it will go up or come down. The rates are historically low. As long as you can find a decent rate with a reputable lender, lock in the rate and don't look back.

[Mike Taylor]

I wouldn't worry about 1/8 here or there. Rates are still good right now and I don't think it is worth the stress of trying to guess if the rates are going to go up or down.

[karyljm]

I agree with Mike, the rates for mortgages are great right now and 1/8 of a point shouldn't be an issue. :cool:

[nancyarora2020]

There is good news for all the homebuyers who wished to own a dream house of there own but couldn’t possess due to the skyrocketing property prices. If you are waiting for property prices to fall by the end of the year to buy your dream house in the city, you may be doing the right thing! Realty experts predict a 10-20% fall in residential prices in and around metros.There is respite ahead for people who want to invest in residential property in metros. According to experts, this segment of the market is set to witness a slide in prices soon. That's because over five million sq ft of residential space is under construction currently in areas in and around Delhi, Mumbai, Chennai, and Bangalore. They say a majority of this supply will hit the realty market over the next 6-12 months. Since there are fewer takers for residential property in prime locations right now, it could force to bring down prices. In certain markets the reason is oversupply. In certain markets the size of the market is very small and the number of projects that have been announced, or which are being sold in the market are much more. Secondly, there is an absence of investors in the market, so it's a purely end-user market. The stock markets have corrected, peoples' perception that they have lesser wealth right now, also effects the real estate market. Experts say the demand for houses in the metros has already reduced by 40-50% in the last few months. While investors and speculators seemed to have left the realty market for now, end-users continue to drive the market but they make up only about 30-40% of the total market size. For more view- realtydigest.blogspot.com

[fairfieldcountyrealestate]

As others have said, the rise and fall of mortgage rates are difficult to predict. Despite recent increases, the current rates are still at historic lows. It is my opinion that rates will probably continue edging up, but you never know.

Have you compared your rate through other lenders? If not, I always recommend to my clients to talk to a few lenders to find out their best options. If you have done that, I would move forward, lock in and purchase your dream house.

Best wishes,
Christopher Rich
William Raveis Real Estate
Fairfield County, CT