Can't decide whether to lock or float your mortgage rate? Let me help.
Each week, I participate in Bankrate.com's Mortgage Rate survey and this week's results may help you make a money-saving decision.
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 saying:
- 47% predict mortgage rates will increase
- 12% predict mortgage rates will decrease
- 41% 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 trying to perfect the Mr. Belding laugh.
Either way, here's what I told Bankrate.com:
"The combination of strong home sales, lower jobless claims, and "big player" Q1 gains push mortgage rates north."
Since April 5th, rates have been on an upward trend for the most part. Some days they go down, others up, however, the fact of the matter is now is not a good time to gamble.
Floating vs. Locking - What's Your Strategy?
At around noon today, mortgage rates have already repriced for the worse by .125% - and with good reason.
Today's big reports were the Initial Jobless Claims and the Existing Home Sales. Both came back with positive influence (less claims, more home sales), and when good news for the economy comes out, that's not good for mortgage rates because investors move their money into the equity markets as opposed to the bond markets.
If you are looking to purchase or refinance your home, get with a great lender, start on a loan application, know your payment limits, and have their number on SPEED DIAL (you think I'm kidding, but I'm not). This way you'll be ready to lock in before any intra-day reprices occur.
Knowledge saves money - remember that!
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