September 22nd, 2011 1:03 PM by Eric Fang
Yes, the market rate is down recently. But it goes the direction as it should go. That's why I can predict the rate.
For the past 9 months, I predicted the ARM rate would go down; then ARM rates bottomed;then 15 yr fixed rate short term bottomed;and 30 yr fixed rates should do lower(pleasecheck my previous blogs if you like).
Now let's talk about the rates.1)15 yr fixed rates bottomed at 3.25%unless new coupon issued.
2)30 Yr fixed rates will be buttoned at 3.75% for the short term.
Question 1, will both rates go lower;My answer is yes. I think investorsshould have new trading coupons this winter.
Question 2, should we wait or refinance now?I have someone called or emailed to "break"120 days waiting period and paying the penaltyto do another refinance. NO, please don'tdo that. Why pay $5000 or more the penaltyfor the rates you will get a few months later. Also, you might be able to get lower rates.
So if you are doing a refinance with your agents,please try to have the commitment to close thetransaction. Then wait for the next refinance opprtunity. And we should and will have.