Is it better to lock in my FHA rate today or wait?

Question

Will the passage of the Fannie/Freddy bailout alleviate bank fears and end this spike in interest rates? I have only a few days left until closing and don't want to sit here helplessly as rates rise. On the other hand, I don't want to lock in today at around 6.5% and see them come back down after it's too late. I know it's impossible to say for sure - just looking for guesses that are more educated than mine. Talk about bad timing!

Answer 1

My rule is always lock in.  Besides they have to lock in a few days before closing because they have to have time to draw up the papers.

Answer 2

You want an industry opinion, don't you?  If it were me, I would lock today and forget about it.

Now, remember that all the previous people were correct. You have to be happy with your decision. Odds are that you will be in a new loan and/or home within 5 years anyway so the impact is not permanent.

Answer 3

based on the way tthe market looks with bonds up at the moment that says to me the yield is down and rates are either staying put or may drop by 1/8 this afternoon

I am a mortgage banker in TN & KY

Answer 4

Well are you a gambler?  How do you read the trends?  FLOAT.

If you're not a gambler or don't like the trends, LOCK now.

Answer 5

If you lock today and rates go up, you are a genius.  If you lock today, and rates go down,  you feel terrible for the next 30 years.  There is no guess that is better than yours.  Do you know of anyone who predicted that 2 airplanes would fly into buildings in NY City.  I don't .  

Every time i buy a house i wonder about this "locking" and sometimes i guess right, sometimes wrong.

Answer 6

flip a coin

head you lock

tails you wait

there is no sure answer to rates going up or down.