Mortgage Rates--- Up/Down?

[Panakk]

Any professionals in the forums? What are your thoughts on this issue.. It's 5 3/4 for 30 Fixed and 4 7/8 for a 7/1 ARM. Do you think it's going up or down? Looking to buy a house in August. Where do you predict it to be then? Insights? Much appreciated.😎😕

 

[CChaos]

Well, I'm certainly no professional, but I'm also a soon-to-be first time buyer so I've been watching the rates. I don't see any reason to believe that there will be a significant rise in rates in the next few months. They will surely fluctuate, but I doubt there will be a major change in either direction.

 

[FeathersMcGraw]

I'm no analyst, but mortgage rates are sitting near 20-year lows -- it's not like there's a lot of room to move down without cutting into the financer's margins. If you're planning on staying in the house for more than a few years, I don't see why anyone would even consider an ARM.

 

[dullard]

They were really low (too low to ever stay there), raised a bit at the end of last year, and now have settled back to another good low. There may be a chance that they will decline a bit, but I doubt that it would be a significant drop or a long term drop.

The feds try very hard not to change interest rates during the last 6 months of a presidential vote. That policy hurt Bush Sr and it hurt Gore (helping both to lose some votes) since in both cases the economy stalled and the feds sat around doing nothing. The feds have this policy to avoid the appearance that they want to help one canidate - so they just do nothing.

The economy is coming back (a bit) and so if the feds want to respond they must act in the next couple of months before they enter their traditional do nothing phase in a presidental election time. So there is a good chance they might raise interest rates a bit now before it is too late. That would indirectly bump up mortgage rates.

 

[Panakk]

I'm thinking between a 30 fixed or a 7 year ARM. reason because in the first 7 years, I save $4500 with the ARM over the fixed. If i stay in the house over 10 years, i definitely end up paying more but in today's economy (i work for a major wireless company), the chances of me staying in the same area more than 7 years is rare. What are your thoughts?

What do you guys have? What was your reasoning behind your decisions? Thanks

 

[Panakk]

Any good websites for comparing rates? I've been calling up most major banking institutions and i've used E-rate and bankrate. I've just not heard most of this small mortgage brokers out there.

 

[Vic]

If they go down, they won't go any lower than they did last year, which isn't much lower than they are now. More likely they will go up, but when is the big question there.

 

[NetGuySC]

I do not think they will go up until after the election.