Should I lock today or wait a week or two?

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After the Fed decided to keep the QE3 going is Sept, I don’t know who to believe? Do you think it will get closer to 4% or should I execute now around 4.3%? Thanks!

6 months ago Bryan Horn said:
 

As of October 25th 2013, the Fed is rumored to keep QE going til March of 2014 as this weeks employment report was weak and the Gov shutdown slowed our economy. So, looking out the next two weeks I would look for a slight downward bias in rates as the 10 yr treasury is 2.51% while it was 2.65% about two weeks ago. Of course, if you have a good deal in place and are closing with 3-4 weeks why not seal the deal (the rate) and sleep good at night? Best Regards, Bryan Horn 858 805 5347


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Number of things to consider to answer your question, Jason. The closer you are to closing, the better your loan pricing is. How long until you anticipate closing? The farther out your closing is, the more time you would have to overcome a temporary rate increase. Another factor is how sensitive you are to payment changes. If your debt ratios are tight, and you risk losing the loan should rates increase, probably should look to lock. Lastly, do you enjoy gambling? If you’re losing sleep over your floating rate, you might want to pull the trigger and lock the loan. In the unlikely event of a US debt default, there is the potential for a large bond selloff, which could drastically raise rates….. hope that helps, Ted

Answered 7 months ago
Ted Rood
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