Was exactly that, a crash. Over the last two weeks mortgage rates have crashed in to a wall, fallen through the floor, broken through resistance or any other negative spin you want to put on it. For the moment, the refinance wave is over. For most folks, it’s likely that you are not going to get a rate today where is makes sense for you to lock in a rate.
However, that does not mean that you should not move forward. Over the last six months, we have had some “steady as she goes” mortgage rates. Rates would stay in a range for weeks on end. Now they are going up every day. The fact is with mortgage rates though, they go up with a rocket, and come down with a parachute.
If you are considering refinancing, this will be a time to get paperwork in and your loan approved so that you can get a 7-15 day lock when rates next dip and close in a hurry at a great rate. This means a little uncertainty relative to the final rate but there will likely be windows of opportunity over the next several months.
If you are considering purchasing, it’s a little more challenging. The reason is that this increase in rates is at least in part to the idea that the economy in general, and the housing market in particular have hit the bottom and are turning around. If this is true, if you wait for interest rates to decrease, you may no longer be able to get a great deal on the property you are interested in. More buyers may step into the market. Economics 101 says that if there are more buyers for the same number of houses, prices go up.
We have a philosophy at America’s Mortgage Choice. You know the old saying “don’t let the tail wag the dog”? The mortgage is the tail, the house is the dog. Don’t let trying to get a good deal on a mortgage rate prevent you from getting a great deal on a house!
