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Originally Posted by kurty[B]
I know a mortgage lender and she has helped me so much in understanding mortgage lingo, and knowing the proper questions to ask, and being honest with me when another lender had a much better loan to offer me.
Today, I'm meeting with that lender to talk about locking-in a rate (I am having a house built, and it probably will not be done until spring time at the soonest).
Looking at the Federal Reserve's site, they posted the following Press Release.
http://www.federalreserve.gov/boardd...20/default.htm
I know guessing what the Fed is going to do with interest rates is not the easiest game, but with the housing market cooling down would they be thinking about decreasing or increasing interest rates down the road? I know there is much more involved in this than just property ownership, but I am curious.
I am going to see what option there are about setting up a float down, and make sure to get as much information as possible with the lender today. Luckily, today I am not finalizing everything, just discussing further options. |
The housing market cooling down doesn't have any direct impact on what they do with interest rates - there are literally hundreds of factors. Unfortunately, there isn't really just a few that are relatively accurately predicable that will give you a good idea as to what the market will do in six months or so.
If you can, lock in your rate for the long haul. If rates drop significantly, often times brokerages will allow you to get the lower rate (they do this to help encourage you to stay with them, as often times if you are locked in at well above market rate when the time comes you'll probably want to shop around some)
As of today, you can still lock in a 30 year fixed mortgage for less than six percent - it isn't going to get a ton better than that, but could potentially get worse if the Fed decides that we still may be having a problem with inflation and increases the rates some more...
Hope this helps - good luck!
If you have any more questions, just let me know!