Question by kizmet_or_beer: anyone have an eye on current mortgage rate trends?
I am buying a home and the rate right now for my loan is 6% (Wells fargo Home opportunities loan 100% financing). Conventional is 5.875 and that is down from last month so I am wondering if I should just lock in my rate or if it is expected to go down more or up soon? I need a good backing for my decision either way. Please help.
Best answer:
Answer by oaklandted
Lock in now, pill treat or soon; the rates are bottoming out.
Add your own answer in the comments!
6% is pretty good. You could get the lowest rate by putting some more money into it, but trying to get it down another 1/8 of point is not worth the effort.
Rates are going to stay the same for the next 6 months (move up or down a 1/8 point.) since the Federal Reserve has indicated that they are not going to change interest rates soon unless it gets data that differs from their expectations. Go ahead and lock it in.
To see the difference, I suggest you go to http://www.bankrate.com or http://www.mortgage101.com to see how much the 1/8 of a point will make a difference.
Just a bit of information, if you have your bank account at Wells Fargo, they could give you a discount on your rate. (maybe an 1/8 or a 1/4). You just have to ask about it.
10-year Treasury notes are a benchmark for setting Mortgage Interest Rates.
Go to Yahoo home page and click on Finance and you can view the activity the Bond is having on any given day.
I agree with taking advantage of “Buying down your rate” if you look at the fully amortization calculator on http://www.bankrate.com you can really see the difference between two rates and calculate the money you would save on your loan.
Good Luck!