Rates Moving UpMortgage rates back bounce to where they were on August 26th.

It is not to often these days that we see rates on the rise.  Although some experts think that is about to change.

Todays rates are slightly higher than they were last week.

  • 30-Yr Fixed – 4.35 %
  • 15-Yr Fixed – 3.83 %
  • 5/1-Yr ARM – 3.56 %

Last week rates looked like this.

  • 30-Yr Fixed – 4.32 %
  • 15-Yr Fixed – 3.83 %
  • 5/1-Yr ARM – 3.54 %

These rates are based on the Freddie Mac Primary Mortgage Market Survey.  Banks all over the nation are polled for there current rates and these are the averages.

The 30 year fixed is base off of 0.7% points, while the 15 year and the 5/1 ARM are based off of 0.6% points.

Old Article? See todays mortgage rates.

Should you lock your rate in now?

Rates are at the lowest they have been in many decades.  It is foolish to not lock in now while they are this low.  You may make the estimation that rates will continue to fall in a week economy, but to me the risk/reward factor is not large enough to float your rate.

Once lenders catch a glimpse of a strengthening economy those rates are likely to shoot up by a half percent or more.

Back in January and February of 2008 rates were dipping close to 5%.  There was a frenzy of refinances and loan locking.  Many people decide to try and float their rate to get under 5%.  Within an hours time lenders put a hold on rates so no one could lock.  When that hold was lifted rates were sitting back at 5.5% and continually rose after that.

Many people missed out on 5% fixed rates, including me. Yes, I decided to try and hold out for a lower rate.  That decision as cost me more than 60 dollars a month for more than a year and half now.  To date I have blown $1080.  If I stay in this mortgage for just 5 years that will be a  $3600 dollar mistake, and if I stay in the house for the entire term of the mortgage it will have been a $21,600 dollar mistake.

You know, I have never actually done the math on that decision and it hurts.

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