I am scheduled to go to closing on 1/21/11. I have been given a rate of 4.75% for a 30 year fixed FHA. Is now a good time to lock? Or  will rates drop at all before my limit of 1/14/11? Any insight would be appreciated.

Bill,

The truth is, no one here has a crystal ball.  Your guess is as good as ours.  If you are comfortable with the payment, lock it in.  You should also ask your lender if they have a float down policy.  This would allow you to lock now and if rates drop significantly your lender may be able to share with you some of the savings.  Good luck to you!

I would lock....after today 4.75% is a great rate. You may want to double check that this is still available tomorrow.

Alan,

I understand noone can predict the future, but I was hoping maybe someone could take a more eduacted guess than myself. I was reading this article:

http://www.mortgagenewsdaily.com/consumer_rates/191287.aspx

Can anyone offer any insight as to the outcome of the December Employment Situation Report?

I know that 4.75% is still a good rate compared to years past, but I'm just trying to get the best rate that I can for myself. I know it's probly a gamble either way, but I just trying to make to most informed decision I can.

That jobs report will be key.  Ask your lender about the float down option that I mentioned. 

Bill,

After yesterdays not so stellar economic news and how the market reacted. There's no telling how things will be on Jan 7th. The market could have the same reaction it did today. But then there maybe more liquidity back in the market then.

I would take Alan's recommendation and ask what their float down policy is.

I asked my LO about a one time rate adjustment after the lock in, I'm assuming that's the same as the float down? She said that they can do a one time rate adjustment but only if the rate changes by 3/8 of a percent or more.

That's reasonable Bill.  If rates only move down .25% how much does that really effect your payment?

yes that would be a float down. i'd take the 4.75 now and wait and see what happens after the 7th. atleast your covered on one end.

Bill,

You are over thinking this. From a risk standpoint it is more likely that rates will move up than move down in the short term. Even if the report on January 7th benefits rates, it will not likley benefit them as much relative to what they will sffer if the report is not bond market friendly.

4.75% is a great rate, and it will look even better if you find yourself staring 5.375% in the face by floating and losing.

Good Luck,

Jason

Thanks for the advice guys. I just called my LO and had her lock me in at 4.75%.

Make sure you get the rate lock agreement signed!!!

If you see any offer of these threads verbals dont cut it, and congrats.