Mortgage Blog

The market is trying to find a direction. And it sent a
clear signal to the market participant, the rate will
no lower than Nov/Dec, 2009 level.

Personally, I think the market over-reacted on the recent
economy news. With the problems from PIGS(Portugal, Ireland,
Greece and Spain), the financial market will se some turmoils
ahead.

What should we do now if you have not locked your rate?
1)The rate will go down, either ARM or fixed. It may not
go lower than the history low levels, but it will go lower
than the current level.

2)Work with your agent to setup correct rate expectation.
Here is the sample rate we may still be able to get it:
Conforming(<=417k)
30 yr fixed 4.875%
15 Yr fixed 4.25%
5/1ARM 3.625%

High-balance(>$417k & <=$719,750)
30 Yr fixed 5% to 5.125%
15 Yr fixed 4.5%
5/1ARM 3.75% to 3.875%

Be calm and be confident. We should also read the lips of Big Ben.
This morning he just said Record-low rates needed to aid economy.
So the mortgage rate will stay low for quite some time.

The planning is more important. We should have lots of opportunities
for the mortgage rates and the other investment. You will succeed
if you'll be patient and persistently try.