My Lock Advice for Today:

If I were considering financing/refinancing a home, I would...

  • Float if my closing was taking place within 7 days
  • Float if my closing was taking place within 8 and 20 days
  • Float if my closing was taking place between 21 and 60 days
  • Float if my closing was taking place over 60 days from now

This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.

Interest rates are based on numerous economic, financial and credit based factors that adjust daily. In addition, lenders can vary on qualification criteria from program to program. If you like the rate today, the safe bet is to lock. Even if rates improve, they wouldn't improve enough in the short term to make you cry about it. But if you are an ardent market bear, and accept the risk of negative mortgage headlines, and believe the economy will just get more bad news next week, and you have the money to risk, you may benefit from floating. Just remember, it always seems more painful to have not locked when you should have as opposed to locking and then watching rates get a little better.

   

Star Mortgage
Twitter    Facebook    LinkedIn    Trulia    Articles and Blogs About the Mortgage and Real Estate Market on Cape Cod    rss

Lew Corcoran, Sr. Mortgage Consultant
Reverse Mortgages / FHA Loans / VA Loans
USDA Rural Development Loans
in Massachusetts and Florida
Save on closing costs when you apply for a mortgage online
ActiveRain Blog / Localism / New England Properties
The Mortgage Market Watch and Interest Rate Lock Advisory
   
 
This post has been included in Massachusetts Information
Post is included in group: Consumer Mortgage Tips
Post is included in group: Interest Rates
Post is included in group: Mortgages

2 Comments on The Daily Mortgage Interest Rate Lock Advisory - August 20, 2008

AUG
21
2008
211,828 Points 2 Featured Posts Outside Blog

seems like rates are headed downward. has the market factored in rate cuts by the fed?
12:36am • #1
181,775 Points Outside Blog

 

Mortgage interest rates are not directly influenced by or tied to the federal discount rate. The discount rate is the interest rate on secured overnight borrowing by depository institutions. Thus, any change in the short-term discount rate most likely will not affect interest rates on long-term mortgages.

Rate Relationships 2005 - 2008. Source: HSH.com

The primary conventional mortgage rate is a market-determined interest rate for long-term residential mortgage loans. 30 year mortgage rates are largely affected by supply and demand of funds available for long term loans and the anticipated inflation rate. When inflation heats up, bond traders demand higher long term rates. This drives the price of bonds down which in turn drives long term mortgage interest rates up.

One reason mortgage rates have dropped a bit this week is the comments made by Richmond Federal Reserve President Jeffrey Lacker on August 19th. "U.S. inflation will likely cool in the near future, despite recent data suggesting prices rose at a blistering pace in July," Richmond Federal Reserve President Jeffrey Lacker said on Tuesday. "I expected overall inflation will moderate in the coming months."
5:31am • #2

This blog does not allow anonymous comments
 

Click Call Connect - Ccube gets YOU connected with Instant Calling



rets



Click here to fill out a Wish List
of what you want in your next home!






Mortgage Rates
Historical Mortgage Rates


Legal Requirements
and Disclosures

Licensed by the Massachusetts Division of Banks Mortgage Broker # MB0782. WE ARRANGE BUT DO NOT MAKE LOANS. Lew Corcoran is a Licensed Professional, Massachusetts License MLO69200. Florida Mortgage Brokerage Business MBB 0501382. The content and information or data on this website is subject to change without notice. All loan programs are subject to credit approval. Not all loans or products are available in the states we are licensed in. Information on the website shall not be considered a commitment lend. Restrictions may apply. All loans are subject to credit qualifications and Lender approval.

As always, your referrals are greatly appreciated. When you recommend someone you know to me for advice, you can be assured that they will receive Honest, Courteous and Professional service which is what you would expect from me. Lew Corcoran

Star Mortgage® is our trademark. Registered with the United States Patent and Trademark Office - All Rights Reserved.


Repair your credit today with Lexington Law




Links

Archives

RSS 2.0 Feed for this blog

Find MA real estate agents and Brewster real estate on ActiveRain.