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Interest Rates are Falling and they could go up anytime.

Mortgage and Lending

The media is in the process of predicting mortgage rates going below 4.5%.  I have fielded tons of phone calls from my customers asking if this is true.  I have no idea.  Rates do seem to be coming down, but will they go below 4.5%?  I don't know.


My suggestion is:  If current rates of 4.75%-5.25% would save you money on your house payment, then you might want to consider getting a refinance in process.   Provide all of the required credit documentation and go to the expense of getting an appraisal.  Let us process out your loan and be ready to close.  If you really think that rates will go down further, have your loan ready to go, but don't lock the rate.   This puts you in the position of being able to act quickly if rates hit your target rate.  If they start to head back up and you can still save money at 5%, then lock and close. 


Why do I suggest this?  I have been through several refinance booms.  The turn-around time on getting an appraisal can go from 4 days to 30 days.  Getting title work can go from a week to 5 weeks.  Getting through to a loan officer can be days instead of hours.  Underwriting time can run a week to 10 days instead of 24 hours.  The sheer volume of refinances when rates fall significantly can make it very frustrating to get that refinance closed.