sgip
Well-known member
You're bumping up against the Fed ending QE in the next 45 days, and perhaps peace breaking out all over what with Pootie Poot sitting down with his opposite number from Ukraine today, along with the most recent Gaza cease fire being announced. With rates moving lower over the past few weeks ever.... so.... slowly there is a real chance of a retracement ahead. Trees don't grow to the sky, and rates smoothly head in one direction all at once.
On the other side, there is simply zero growth in the Eurozone and rumbles of QE Euro grow louder. China appears to be in a stall. Once the November Elections pass, delayed Affordable Care Act penalties will begin to hit the US economy harder than most expect. (IMHO). These factors could push rates lower. So then with worst case/best case scenario angels resting on each shoulder, who do you listen to?
Lock now or wait? In my mind the right question is this: "Will my new home purchase be stressful if I'm watching each and every tick up and down and up and down and up and down every single day in and out... you get the picture... If so, lock it and forget it. If you prefer to hover over these kinds of details as many prefer, then by all means float. It's not so much a rate/fee question as a quality of life one. Remember, you might lock at 4.0% after watching the market, only to refinance to a lower 30 fixed or a 5/1 later on like many other TI'ers.
BTW the "lock fee" lenders charge should be viewed as a deposit, not a cost. Most programs apply the amount collected towards your overall closing costs. Be sure to read the fine print though, and don't just take what the loan officer says. These programs have "float down" options to lower rates so there really isn't much of a down side, other than once you pay the deposit not only are you locked in at that rate, but locked in with that lender. If you're going to lock, be sure to work with someone giving you a better, lower lock price to start with.
My .02c
On the other side, there is simply zero growth in the Eurozone and rumbles of QE Euro grow louder. China appears to be in a stall. Once the November Elections pass, delayed Affordable Care Act penalties will begin to hit the US economy harder than most expect. (IMHO). These factors could push rates lower. So then with worst case/best case scenario angels resting on each shoulder, who do you listen to?
Lock now or wait? In my mind the right question is this: "Will my new home purchase be stressful if I'm watching each and every tick up and down and up and down and up and down every single day in and out... you get the picture... If so, lock it and forget it. If you prefer to hover over these kinds of details as many prefer, then by all means float. It's not so much a rate/fee question as a quality of life one. Remember, you might lock at 4.0% after watching the market, only to refinance to a lower 30 fixed or a 5/1 later on like many other TI'ers.
BTW the "lock fee" lenders charge should be viewed as a deposit, not a cost. Most programs apply the amount collected towards your overall closing costs. Be sure to read the fine print though, and don't just take what the loan officer says. These programs have "float down" options to lower rates so there really isn't much of a down side, other than once you pay the deposit not only are you locked in at that rate, but locked in with that lender. If you're going to lock, be sure to work with someone giving you a better, lower lock price to start with.
My .02c
