Sorry for missing posting an update yesterday, I just found out I am going to be a dad for the first time and my day was crazy from there as you can imagine! The good news is there was not really anything happening with rates yesterday so we didn’t miss much!
Mortgage rates moved slightly higher yesterday but managed to hang in there a lot better than expected considering all the economic data and earnings reports we got this week. Today, mortgage-backed security prices are mostly unchanged and mortgage rates trended just a little bit lower. But in the big picture however, compared to last week mortgage rates are about 0.25% higher.
Although there is talk of an extension, the first time home buyer tax credit is currently scheduled to expire on November 30th. If you want to take advantage of this great money opportunity, get your loan application submitted. One thing you should know is, you will be unable to lock your interest rate until you have secured a home contract. Additionally, if you lock and change your mind on the original home for a different home, you will be required to do a new lock at the current market rate since the lock goes with the specific address.
As for the question as to lock or float your rate today, we are somewhat neutral based on your risk tolerance level. If you want to try to get a lower rate, it could happen, but it could increase just as easy. If I am making that choice I would lock and secure the piece of mind.