KICKING MYSELF, SHOULD I HAVE LOCKED MY RATE IN YESTERDAY!? brokers, help!

[homewardbound]

I am closing on July 31st and was quoted a rate of 5.375% for FHA 30 year fixed, Wells Fargo Bank.  Today it's gone up to 5.5%.

Should I lock it in, or do you think it will go back down by the end of the month?  HELP!!

Thanks

[Lel]

I'm not a broker, but I don't think any of the pros here have any special powers of clairvoyance.

I'll say this: the CPI just rose higher a little more than expected.  Jumps in the CPI are usually seen as a sign of inflation.  The mortgage markets might have reacted to this news, leading to the increase in interest rates today.  However, the higher-than-expected rise in the CPI might just be a temporary blip, because it was probably driven by higher gas prices over the last month.  Oil futures have been trending downwards recently, and gas prices are following.  I don't think anyone is really concerned about inflation any time soon.

5.5% is a great rate.  I know that compared to the sub-5% rates a few months ago it doesn't look good, but if look at rates over the last 50 years or so, you'll see just how good it is. 

Message Edited by Lel on 07-15-2009 09:30 AM

[SonorityGenius]

Rates are unpredictable, we don't know what the Fed will do by end of month and we dont know what data points change/become available/regulation comes in effect by than.

5.5% is a good rate in present market conditions; but a big lender I just saw offered 5.0 with 1 point yesterday and as I always stress: if you can afford to pay points, and live in the home long enough, pay points!! They're well worth saving on interest/monthly payments in the long term of the loan!

[Anonymous]

Historically, 5.5% is a GREAT rate! (For example, it's very close to what my parents paid 50+ YEARS AGO when they bought their first home!) Be content.

[Desert-Rat]

Don't kick yourself too hard...  Like the others said, 5.5% is really good.  And it might get better before you close.  I'm in the same boat you are so I know how you feel.  I let a 4.75 refi get away in March.  Today I talked with a broker (local) that put together a much better deal even with the higher rate.  So...... hang on!

Tomorrow, the Financial Guru's that painted the "rosey CPI picture" today may change their minds about how well the economy is doing.  Trading was halted on CIT just before the bell.  We (I) didn't hear anything about this on our evening news; I think because it happened so late they didn't get the info.  It doesn't appear CIT will get another government bail-out according to CNN Business Reports and could be out of business as early as Friday.

(I'm having a hard time feeling sorry for them, they should have accepted our GW's!  )

When it all shakes out,  this could be good for us while making it really tough for small businesses, who depend on credit for inventories.  It may mean we'll see more "Mom & Pop's" failing due to lack of credit lines which is the down side.  I hate to see that, I like spending my money where they know my name. 

Here's hoping the Rate Fairy smiles on us!

D-R

[Anonymous]

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@homewardbound wrote:

I am closing on July 31st and was quoted a rate of 5.375% for FHA 30 year fixed, Wells Fargo Bank.  Today it's gone up to 5.5%.

Should I lock it in, or do you think it will go back down by the end of the month?  HELP!!

Thanks

---

Aww, man, sorry to hear that,but as ppl have stated, 5.5% is still a great rate. If you're feeling lucky you can wait to see if it goes back down to 5.3 or so. Worst case senerio, it gets a lil higher than it is now

Best wishes!!!

[DallasLoanGuy]

Message Edited by DallasLoanGuy on 07-16-2009 10:21 AM

[WannaHouse]

LOL Dallas!!

You can always call your LO and tell them if it falls again to lock it in and THEN call you.

[DallasLoanGuy]

rates improved somne today