Well, we may be seeing the signs of better rates in the coming days. I am going to tell my current clients to hold off on locking their rate right now. The reason is last week mortgage rates got about .375% worse off their earlier levels. This pushed the 30 year fixed to about 6.25-6.375% on Monday of this week. Then we began to see a rally on the bond market.
The reason was we had punched through a ceiling of resistance for trading levels and created a new level of support, and also stocks began to sell off. Bonds seem to be crossing over from an “oversold” state and headed into better territory. So, if you were my client right now I would tell you to hold off on locking your rate. But keep a tight eye on the market for you, as the market has been very volatile as of late. It is always better to be safe and take a slightly better rate then to hold off and end up with a .25% higher rate in today’s market. That decision could save you $10,800 over your loan on a $200,000 home purchase or refinance. Let me know if you are uncertain about getting the right advice on rates or are being given vague advice on what to do with your rate.