After one of the biggest one week drops in 30 year rates(5.75%) we've seen in a long time, many financial advisors are saying that this may be the best time to get in the game. Brian Brady, who proclaims himself America's #1 Mortgage Broker chimes in:
Longer-term, mortgage applicants may find mortgage rates higher than they are today. The realization that SOMEONE has to pay for this bailout will hit everyone, after the election, and treasury bond yields should rise, pushing the MBS yields, and mortgage rates, higher as well. Not a rosy picture.
So, lock those loans at application. While the current 30-year fixed rate loan offering, with 1% origination fee, is 5.75%, for a conforming loan (6.02% apr), the risk of those rates popping up to the 6% level far outweighs the reward of holding out for 5.625%.