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If you are shopping for a home, you know there is a lot of noise in the marketplace. Earnings and stocks are rallying at a quick pace. Last year, the Fed was buying up $550 million/month mortgage back securities, this year they are buying $440 million/month in mortgage bonds, which is a 20 % reduction which will force rates to go up. This week prices fell just a bit, so rate went up just a tick.
This is not a time to get “cute” with your offers. If you wait and try to get a few thousand off the price of the house, might translate into a higher interest rate. Even an eighth of a percent would increase your payment by $400 a month.
Also don’t get cute with your lender. Yes, rates are a moving target but by the time you shop all the lenders and get back to the 1st lender the market will have changed, and the cost of the mortgage may, in fact, be more.
Make sure you know like and trust the firm you are working with.
