When should I lock in my rate?

[Anonymous]

Hi again!

I have finally decided to stick with CTX mortgage for the home Centex is building for me.  Now I just need to figure out when I should lock in my rate. Right now we are still at 7%...I was planning on waiting in hopes of a lower rate (we close in about 5 weeks), but I'm getting a little bit nervous.  Any thoughts or opinions?

[Anonymous]

IMO- Rates are close to the lowest they are going to be.

Have you considered buying down the rate?

Do you not qualify for Fannie underwriting?

[Anonymous]

http://ml-implode.com/staticnews/2007-10-24_Centexcutspricesinresponsetomortgageturmoil.html

Centex cuts prices in response to mortgage turmoil

"We responded quickly by adjusting home prices in many of our neighborhoods to levels that would enable buyers to qualify for FHA mortgages..."

"Centex said the average price of its homes sold in the latest quarter fell 8% as it also offered more incentives to lure buyers nervous that the housing market has not yet reached bottom. Discounts and incentives totaled 11% of housing revenue, the company said." [Ed. Note: of course the incentives don't show up in price; just negatively in profits. Part of the reason the decline is worse than popularly reported.]

[ShanetheMortgageMan]

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bsf56 wrote:

Hi again!

I have finally decided to stick with CTX mortgage for the home Centex is building for me.  Now I just need to figure out when I should lock in my rate. Right now we are still at 7%...I was planning on waiting in hopes of a lower rate (we close in about 5 weeks), but I'm getting a little bit nervous.  Any thoughts or opinions?

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If you are getting stuck with 7% on an FHA loan then I don't think your LO would tell you if rates got lower, as 7% is high for FHA, just my opinion.