I wanted to alert you about rates. If you are getting close to buying a home, or are actively negotiating offers, It's time to pull the trigger and lock in a rate. I have been monitoring a nice drop in rates over the past several weeks (that's the sweet), but the time has come to cash in your chips. Bonds have been in an over-bought position for about a month now and with the approaching jobs report Friday I, along with many industry experts, am predicting a rise in rates (that's the sour). I am strongly recommending LOCK.
Here is the issue... you would think that higher rates simply mean higher payments. You would be correct, but think about that house you are negotiating on. You can't believe the gall the seller had when he countered your offer by 5k! Think about it, most people end up splitting hairs on about 1% of the sales price. I would like for you to consider what the impending movement in rates would do to the effective home price. What I've found is that negotiating over 1% of the sales price proves futile if you miss locking in interest rates at the appropriate time. Just a .25% move in rates would in most cases make it feel like you just paid 1% more for the home anyways.
I guess the moral of the story is... take my advice and lock in that 4.25% 30 year fixed rate before it gets wings and flys away.
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