- LOAN OFFICERS
I would suggest you Lock In!
Of late, the main question I am hearing from borrowers is whether or not they should lock in. Nobody really knows for sure what the market will do, but there is more risk of rates going up than down.
The federal government stopped purchasing their own debt as of March 31st, which had been keeping rates artificially low. We all expected a major jump up, but we only had a minor increase. I still believe there is great potential for rates to move up to about 6%, so if I were applying for a mortgage I would want to lock in early on in the process. Yes, it’s possible rate may dip a little , but it is more likely rates will move the other way.
When mortgage rates are at historically low numbers, in the long term there is only one direction rates can go. If you would like to gamble and try to time a bottom, go for it. However, if you asked me I would Lock IT IN!