What’s that old idiom? “Don’t look a gift horse in the mouth?” The is for loans in Roseville, Sacramento, and beyond…
For anyone thinking about refinancing or still sitting on the fence with their lender on a rate lock now is a really good time to look into locking. We’re looking at THE BEST conventional mortgage rates in history today. Many of us have been waiting for a certain magical number that may or may not ever be available (not is more likely). I would ask; if rates are the best they have EVER been, what would make them any better? Why would we assume they get any better?
The truth is that they could get a little better. Maybe 0.125% or maybe even 0.25% better. I mean, it’s not impossible. But it is not likely! Not by a long-shot. In reality odds are against it and the technical data shows us that it is much more likely that rates will get a little higher in the very near future. At least back into the range they have been the last couple of months. When? The market has been so volatile lately it could happen by tomorrow.
I just locked in a 30 year fixed at 4.5% for one of my clients. Another one a 15 year fixed at 4.25%. Is it worth risking these rates for a possible 0.125% better? I’m advising all my clients that are closing in the next 20-30 days lock in now. This is just too much of a good thing. Everything points to this not lasting long, maybe not more than a day.
P.S. Some day soon I’ll have to give a short presentation on how the mortgage market works and how interest rates are determined.