Should I lock in my rate for a mortgage before the end of the year?

Hi Brett:I write a blog here on lender411 about mortgage rates dailymy Blog link is www.lender411.com/mortgage-articles/3824/Market-News-On-Rates-12-19-2011Overall, I am expecting to see some movement in the markets and mortgage rates, especially if we get some surprising results from the week's data or news about Europe's financial crisis. Despite the holiday season, we need to keep a cautious approach toward rates because we are likely to see very thin trading (light volume) as a result of many traders keeping short hours or home for the holiday altogether. This means that firms that trade bonds will likely be keeping only a skeleton staff the latter part of the week and raises the possibility of a stronger reaction to surprises in the economic data than we normally would see. If I were considering refinancing a home, I would.... Lock if my closing was taking place within 7 days... Lock if my closing was taking place between 8 and 20 days... Lock if my closing was taking place between 21 and 60 days... Float if my closing was taking place over 60 days from now.

Hi Brett:Not true. They are what they are because of fluctuations in the financial markets. 4.5% for an 80% refi is much too high today unless you have some qualifying issues. You should be able to get an interest rate in the high 3s without points, and very little cost. KS rates shouIdn't be much different. I would love to work with you on your refi but, unfortunately, I only do loans in CA.

Mortgage rates are driven by Mortgage Backed Securities.. A lot of things effect the movement of these securities. Just as the stock market fluctuates, so do MBS. The end of the year is a time where a lot of selling is done, so it's possible that there will be some movement, however it's usually minor.. 4.5% looks like a good rate if the lender is paying your costs... WilliamAcres.com

Great question. You should absolutely lock in. rates are at all time lows right now and you just never know what the future may hold. A bird in the hand! If you locked in with me today, based on the info you provided with exceptional credit, suffucient income, you wiould be at 3.875% on a 30 year fixed.

There is no truth to lower rates at the end of the year. 4.5% for a 30 year with 20% down is a high rate, I can get you under 4% call me at 734-395-9027

No. The end of the year has nothing to do with rates. Rates are driven by market conditions as funds flow into and out of the stock and bond market. Today most of the mortgage backed securities are being purchased by the US treasury which is helping to keep rates at their current low levels. Rates do fluctuate daily and can rise and fall several times each day. Today, an 80% LTV conventional no cash out refinance should be running you close to 4%. Tomorrow the rates could be a little higher or lower. Everyone is looking to secure the best possible rate. If you anticipate closeing in the next 2-3 weeks, locking now would guarantee a great rate since we can't see the future.