August 12th, 2010 8:00 AM by Eric Fang
Even though the rate will go lower, we still recommend to lock the rate. The reason is very simple. Human beings will notlike uncertainty. When you did not lock the rate, you willfeel uneasy when the rate goes up(like today). And peoplewill regret that they did not lock the rate earlier.
Also, even if the rate may go lower, it will not go overnight.It will go slowly. So even if you lock the rate, secure oneof the best rates, and you don't lose anything(you can refi4 months later).
There was an article from wall street journal yesterday suggestingthe Fed to increase the rate a little bit. Their reason is thatvery cheap money for the mega banks and the big companies will discourage them to take risks to create jobs and make some investment. They would rather to investment in government debtsto secure low risk returns. I don't know whether Mr Ben will listen.