30 yr fixed forecast

funk_jay · Joined: 20 May 2008 Posts: 1 1.61 Dollars($)

Can anyone tell me if the 30 yr fixed rate will drop in the next 30-45 days? I am closing on a home at the end of June, and my lender currently shows a 5.875 rate. They update twice daily, and I am trying to decide if I should pull the trigger now that it is below 6% or do I have enough time to wait it out for a better rate based on forecasts.

Thanks,
Jason

JuanHdez · Posted: Tue May 20, 2008 11:27 am Post subject:

The waiting game or "floating" is like rolling the dice at the craps table.

Let’s say you do decide on waiting, you might get the benefit of improving the rate by what? 1/8th - 1/4 percent. You will notice that this might, again might lower your monthly payment by 15-20 bucks per month depending on the loan amount. What I would do, just a matter of personal opinion, is lock the loan and avoid the hassle and headaches that come with floating.

Best o' Luck

J Smile

helping_user · Posted: Tue May 20, 2008 11:01 pm Post subject: RE: lock in the rate now

Hi,

I think Juan is right in saying that you should lock the rate now. You never know how much the rates may drop, perhaps it may not be a substantial dropdown too. And by the way, as what I've got to hear is, rates may rise in the coming weeks. So better go for the rate lock now.

Thanks.

lisascherzer · Joined: 04 Jan 2008 Posts: 599 69.58 Dollars($)

Just go with a broker that can offer a free floatdown so that if rates go down, you will get the lower interest but remain locked in the meantime. Rates have been going up and down over the last several months and it's hard to say where they will end up in a month or two. I wouldn't chance it, but go with a broker or lender that will give you the floatdown for free.

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