Mortage rates are going up?///// please help....?

Question

Hi I am a first time home buyer, I purchese a new house and it will be ready till dec. or jan.now a dayes mortgage rates are going up.,and I can lock my rates for 6 months.can I lock my rates now for 6.5 or above or wait for some time to get it down. what is the real trand of mortage rates, please healp..........

I can lock my rate only 2 times till dec.so I have to wait or lock it now any sign of rates fall down a littel in next month.

Answer 1

It looks like rates will go up. You could go for a 5 year arm (fixed for only 5 years), that could lower your rates.

Answer 2

If someone could tell you what the rates will be like in January, they would be millionaires.

If you're content with 6.5% rate, lock it in now.  Compared to the 11% and 14% rates in the 1970s and 1980s, 6.5% is a steal.  If you want to gamble and hope they go down, don't lock.  It's all up to you, nobody can tell you for sure what's going to happen.

A side note is that inflation continues to rise, so the Fed likely isn't going to cut rates anymore.  Mortgage rates are tied to the 10 year treausury bond, not the Fed, but the Fed rate does influence them somewhat.

Answer 3

In 1987 the interest rate on mortgages went up 2% in 4 days.  Not one "expert" predicted that.  In 1995 interest rates went up 1% overnight.  Not one expert predicted it.  I know because i subscribe to every mortgage industry newsletter.

No one can help you.  Pick a rate and buy your house.  No need to lose sleep... more important things to worry about.

Answer 4

rates can go up and down, and will

TALK to your lender, broker to find out the rules with their programs, we don't know

rates may decline as this Fannie Mae/Freddie Mac bailout takes shape