Big news, rates are probably gonna drop back down

[tooleman694]

Feds decided not to tapper QE3. I would expect rates to drop again big time.

[krenee2525]

YAY!!!!!  I'm currently locked in at 4.625% until 10/10 but I know my house will not be complete by that date, so this is GREAT news for me!!!  Thanks for the information!

[foofighter74]

The chief economist for Freddie Mac just stated he expects mortgage rates to hit 5% by the middle of next year. You might see some leveling off for a while, but the 3.25 rate we locked in in May is a thing of the past for a long time I believe. 

[DallasLoanGuy]

some lenders didnt reprice today.

i saw an average of .25% drop

when we see big drops like this, the lenders will keep some of the spread for a few days to protect themselves in case they shoot back up.

[frugalQ]

I just read about the Fed's decision...and I agree that they will drop.  However, I think it will be temporary....the feds can't continue this program forever

I also read that the new housing starts were below expectation.  People stopped buying once the interest rates and home prices skyrocketed simultaneously.  I think new home builders will bring back better incentives because they are not moving these homes like they were earlier this year.  Real Estate is such a tightrope walk....whew!

[moneypenny02]

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@DallasLoanGuy wrote:

some lenders didnt reprice today.

i saw an average of .25% drop

when we see big drops like this, the lenders will keep some of the spread for a few days to protect themselves in case they shoot back up.

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I was deciding whether to lock this morning and we ended up waiting until after the speech, and my lender gave me a rate drop of .125 -- from 4.625 - 4.5%.  We locked in today, but maybe we should have waited another day.  :-(