Settling June 25th...lender still at 5.375% at 1 pt, 5.5% at 0 pt. for 30-year FHA.  Not being too greedy, but would like to get to 5.25% or lower at 0 pt to lock.  Are things looking too risky to float into next week?  Or has the bleeding slowed and there's a chance of some slight MBS improvement next week?

There is a chance of improvement but you never know for sure.  Ask yourself how much it will bother you if rates moved up vs the possible benefit of a lower rate.

The MBS market is recovering nicely.  I would not be uncomfortable floating into next week.

Risk is a relative of tolerance.   I'd say float....look to lock in next 8-10 business days.

Chris, the huge rally we had on Friday is not reflected on rate sheets yet. It's going to take a few days before the dust settles. Follow the blog closely. It is likely that you will have a sweet spot to take advantage of over the next week or so.

I close a fair amount of purchases and I always try to avoid floating when settlement is less than 2 weeks away. If the market tanks inside of 2 weeks you have very little opportunity to wait for a recovery.

Stay in close touch with your broker/banker next week and good luck!

Thanks everyone for your input.  Still floating.  Today obviously isn't a good day in MBS land.  5.375 at 1 pt. and 5.5 at 0 pt.  My lender got a reprice for the worse this morning, and another around lunchtime.  Hoping MBS recovers some this week and can get maybe .25 off the rate.  Keeping fingers and toes crossed....someone please wake up the MBS Dragon again!!!!!

Gotta love the recent volitility versus the stability of the past 5-6 months.  Enjoy the ride!

Well I certainly am not enjoying the ride...but the liquor store owner down the street sure is!!!!!!  I just hope we get a nice, quick rally so I can lock and start being able to sleep at night!

This really stinks as I am just about to hit my 30 day window and now rates are climbing ever so quickly.  I have been following since Deceber and the only reason we even thought about buying/building was b/c of rates.  The only thing I can do now is sit and wait.  My stress is through the roof about this.  SIGH!!!!  Here's to hoping for a rally for all current floaters.

Yes, I am in this boat as well. Signed all of the house contract papers with the builder Wednesday night going into it happy, heard about "Black Wednesday" that night after I got back.  Went from 5% to 5.5%.

Don't know what to day at this point as that difference in interest is the difference of $50 to me a month.

Aaron, I know how you feel.  I signed contracts a little while ago (new construction) and my first day to lock at 30-days was Thursday (the Day After Black Wednesday).  Rates were from 4.5-5 for the past few months and now have skyrocketed to 5.5%.  I'm planning on locking as soon as there's even a slight decrease in rates (maybe around 5.25%) and licking my wounds from there.  5.25% is still a hell of a lot better than 6!  Hopefully i'll get one more crack at it!

Unless you believe our economy has turned around, we should have some lower rates back soon!

Kent Mikkola:

Unless you believe our economy has turned around, we should have some lower rates back soon!

Amen...

COE - June 25th...personally I'd float...u got a good 3 weeks...

akaagassi:

COE - June 25th...personally I'd float...u got a good 3 weeks...

That is the important part.  3 weeks gives plenty of time for you to take advantage of a dip in rates.

My position is that closing is around the first week or so in august, so hopefully between now and then the FED will step in and drive rates back down, at least for a day :P

Hopefully the dip comes sooner rather than later.  I can't take much more of this!  I don't know how all these investors think the economy has recovered with unemployment still rising, GM declaring bankruptcy, and the fact that increasing gas prices is going to slow consumer spending AGAIN!  The "better than expected" economic data still isn't good.  If a football team loses by 34 when they were "expected" to lose by 35, does that mean they've turned the corner and are improving? 

The markets have been historically very optimistic, not rational.  Less worse news is the new good news.

Latest update -  5.5% at no cost,  5.0% at 1.75 pts.  Slight improvement from the past few days and hoping for a reprice for the better today.  Be nice to get to 5.25% or even 5% at no cost...we'll see what happens.

i am also in the same boat.  I got the same rate

Did you guys get the 5.5% rate with any origination points or discount points?