Mortgage rates have been very volatile these past few days. Yesterday morning, I posted that the 30 year conforming fixed was under 5% and by the end of yesterday, mortgage rates had increased by 0.375% to rate or around 1% in fee.
Rate shoppers lost out big time if they did not lock.
Rates are continuing to rise at this time. Please don’t dilly dally with your mortgage interest rates. There are fewer Mortgage Professionals to assist you in our current market and many of us experienced (and I’m still seeing it today) banks being “clogged” with people trying to lock…websites “down for maintainance”…etc. By the time a Mortgage Professional can get through to lock in a loan, the rate is gone. Bam.
Next week has offers a full menu of events that promise to impact mortgage interest rates:
- FOMC Meeting on Wednesday, January 30th. (If the Fed drops the Funds Rate…mortgage rates may rise).
- Thursday, January 31 will bring us several economic reports which will indicate inflationary levels such as the PCE and the Chicago PMI.
- And as next Friday is the first Friday of the month, we will wrap up the week with the Jobs Report.
Again, I highly recommend that you lock in your interest rates for conforming loans and make sure it’s for enough time for your transaction to close. A possible bright spot: the conforming loan limit may be increased…no promises but this will be great help for the JUMBO market from $418,000 – $620,000.
Bye for now!
Update January 24, 2008 at 2:55 p.m.: I just priced the 30 year fixed conforming at 1% origination/discount…I can barely lock in 5.5% (APR 5.642%) based on my usual criteria for “Friday’s Rates” (which I will be posting tomorrow). Is it 5 yet? 😉