If I had a crystal ball I would answer that for you. I’d also be rich!

All indicators lean towards rate going lower over the next few days. Fed just dropped the rate to 1%. This may or may not have an impact. Historically, rate tend to drop after a presidential election, but times are very different now.

Here is what I suggest. Don’t gamble on whether or not rates are going to dip. If you can currently lock at a PAYMENT that falls within your comfort zone, do it. Once you lock, put blinders on and forget what the rates are doing.

If you like to gamble and can well afford the payment if rates don’t change, or dare I say, go up. Than roll the dice. It really is up to you and your tolerance for risk.

Congrats on the new home!

As consumers, we should not speculate about interest rates. You have a commitment to purchase a home that you need to cover. Find the best rate you can and lock it and then stop worrying about it.

Rates are up this week, but are slightly improved over yesterday. I had a borrower a week ago that I could have locked at 5.75 with 1% origination fee on an FHA loan. As of yesterday, we would have been at 7% with 1% origination.

If you are putting money down, ask your lender if they have any convertible ARMS. We have a 1/1 ARM that can be converted to a fixed rate program anytime after the first payment and within the first 36 months. It is at 4.5%. 95% max loan to value or 80/10/10 with no pmi. This is the perfect loan for borrowers who feel rates may be lower in the near future. I think they will get better. It is just a matter of when and right now, you don’t have the luxury of waiting and seeing.

Good luck with your purchase.