Professional Home Staging and Photography Blog: The Daily Mortgage Interest Rate Lock Advisory - June 26, 2008

The Daily Mortgage Interest Rate Lock Advisory - June 26, 2008

My Lock Advice for Today:

If I were considering financing/refinancing a home, I would...

  • Float if my closing was taking place within 7 days, but watch the markets carefully and lock if conditions change
  • Float if my closing was taking place between 8 and 20 days, but watch the markets carefully and lock if conditions change
  • Lock if my closing was taking place between 21 and 60 days
  • Lock if my closing was taking place over 60 days from now

This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.

Interest rates are based on numerous economic, financial and credit based factors that adjust daily. In addition, lenders can vary on qualification criteria from program to program. If you like the rate today, the safe bet is to lock. Even if rates improve, they wouldn't improve enough in the short term to make you cry about it. But if you are an ardent market bear, and accept the risk of negative mortgage headlines, and believe the economy will just get more bad news next week, and you have the money to risk, you may benefit from floating. Just remember, it always seems more painful to have not locked when you should have as opposed to locking and then watching rates get a little better.

 

East Bridgewater, MA 02333
Phone: (508) 443-1332

Lew Corcoran, ASP®, IAHSP, IAHSP-CB
Accredited Home Staging Professional
Professional Real Estate Photographer

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Comment balloon 1 commentLew Corcoran, ASP® • June 26 2008 11:09AM

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Update:

Bonds are looking positive through the day today. The resistance remains, however, and there's still a potential for a rebound in stocks today or tomorrow - that could lead to a turnaround in mortgage rates. In addition, there is still a negative outlook for Mortgage Backed Securities for the rest of the month. So, if you're floating, stay vigilant, keep watch, and remain hopeful, but be ready to lock if there's a turanround.

Posted by Lew Corcoran, ASP®, Home Stager & Real Estate Photographer (Scena Home Staging & Decora Photography) almost 10 years ago

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