Scratching your head on where rates are headed? Let me help.
Every week, I participate in Bankrate.com's Mortgage Rate survey and this week's results may help you time a rate lock and save some money.
Conventional and Conforming Mortgage Rates Only
The Bankrate.com survey is for conventional, conforming mortgages only. It does not apply to FHA mortgages, VA mortgages, USDA mortgages and it's not specific to Texas mortgage rates only. In addition, unique property types such as non-warrantable condos and condotels may be excluded, so keep that in mind.
The Predictions
Here's what the group is predicting:
- 39% predict mortgage rates will increase
- 22% predict mortgage rates will decrease
- 39% predict mortgage rates will remain unchanged
I expect mortgage rates to increase.
My advice not be appropriate for your specific situation and I'm not always right. Ultimately, you may find your time better spent by eating a Philly Cheese Steak and watching Gilligan's Island re-runs.
Either way, here's what I told Bankrate.com:
"With lots of market-moving reports on tap the remainder of this week, mortgage rates will see a spike as last week's gains are now diminishing."
Ever since the Fed exit on March 31, rates have been extremely volatile, and while rates are still low, there is definitely a lot more room for them to get worse than improve.
Floating vs. Locking - What's Your Strategy?
The economy is starting to rebound and the Fed has already been talking about increasing the Fed Funds Rate. With this type of talk on the horizon, mortgage bonds are seeing some major swings. Key levels of resistance are pushing mortgage-backed securities back down in tight ranges, and when this happens, usually we see a spike in rates. If you are looking to purchase or refinance your home, get with a great lender and start on a loan application. This way you'll be ready to lock in a great rate when ready, willing, and able.
Remember, the longer you sit on the fence, the more it may cost you.
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