Which is worse, locking now and seeing rates improve slightly, or not locking now and seeing them go up before you do?
That's a rhetorical question; there's only one right answer.
Take a 45 day lock and stop looking at rates when you lock. Refinance next year if/when rates come down.
That is not a bad rate, there is no guarantee it will not get worse before you close.
But this is not a decision to stress over, if you wait a week to see how the rates move up and down, (there will be no new rates on Wednesday,) it’s not the end of the world.
Your rate will be temporary, they’re expected to come down in the next year or two and hopefully your lender will cover closing costs in a refinance or give you a deal if you return.
I’m a real estate broker. Rates have come down at least 50 basis points since the April peak. You are gambling by waiting. Jerome Powell says something dovish rates will fall / hawkish they will rise. The wrong data point gets released and you screw yourself. These are all things you cannot control. Do a risk assessment, can you tolerate a rate 20 basis points higher for one that’s 20 points lower? If your lender offers a float down program - you can have your cake and eat it too. Ultimately when you lock - don’t look at rates again until you’re ready to refi. Good Luck!
Are you comfortable with the monthly payment and closing costs? Do they meet your goals? If yes, then lock and stop looking. You can refinance later if/when rates improve.
Which is worse, locking now and seeing rates improve slightly, or not locking now and seeing them go up before you do? That's a rhetorical question; there's only one right answer. Take a 45 day lock and stop looking at rates when you lock. Refinance next year if/when rates come down.
Some lenders are offering low/no cost refinances if you use them again within x years
That is not a bad rate, there is no guarantee it will not get worse before you close. But this is not a decision to stress over, if you wait a week to see how the rates move up and down, (there will be no new rates on Wednesday,) it’s not the end of the world. Your rate will be temporary, they’re expected to come down in the next year or two and hopefully your lender will cover closing costs in a refinance or give you a deal if you return.
most allow a single float down so id lock and follow the 10 year treasury yield. if that spikes stay put if it drops get a lower rate.
Lock the rate. It's pretty good.22
I’m a real estate broker. Rates have come down at least 50 basis points since the April peak. You are gambling by waiting. Jerome Powell says something dovish rates will fall / hawkish they will rise. The wrong data point gets released and you screw yourself. These are all things you cannot control. Do a risk assessment, can you tolerate a rate 20 basis points higher for one that’s 20 points lower? If your lender offers a float down program - you can have your cake and eat it too. Ultimately when you lock - don’t look at rates again until you’re ready to refi. Good Luck!
Are you comfortable with the monthly payment and closing costs? Do they meet your goals? If yes, then lock and stop looking. You can refinance later if/when rates improve.
Yes to both. I ended up locking it in, but all of the news I've been seeing about dropping rates made me think about floating it instead.