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Floatin dirty
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Discussion Starter #1
The rates seem to have increased in the last 3 weeks which sucks when I am trying to convert my construction loan to a fixed rate 30. The bank offered 6% when I convert from the construction currently at 5.25% to the fixed 30. What do the real estate/mortgage experts think about the rate fluctuation at this point? Should I hold off for awhile and see if they go back down a little or lock in at 6%. I was hoping to lock in at 5.25 which I could have done if the house was finished 3 weeks ago. :|err
 

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Premium Member
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2,625 Posts
They actually have gone up almost a 1/2 point in the last 10 days. Many of the financal boards are saying it's because Obama has spent to much money.
No $hit, you don't have to be a genius to know that.
 

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VOTE!
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2,123 Posts
I read yesterday that the 10-year Treasury average yield during the last 25 years is 6.50% 'ish. The current yield is 3.86 and is expected to stay under 4.00% until the middle of 2010.

If the mortgage rates are priced of the 10-year then we could see rates in the mid 8's withing 12 to 18 months.
 

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Seriously off center
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I locked in at 5 1/2% for a 30 year, manufactured, 2nd home. I got lucky because rates were moving when I finally got approval. One things for sure.... they're not going down any time soon.
 

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Floatin dirty
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Discussion Starter #6
This is my fear also. I had to wait until the construction was done and now that it is, I am stuck with the current banks rates. I have to have the loan converted to fix rate for 3 months before I can look at other option without a penalty.
 

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Premium Member
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799 Posts
Bond sale on Wed and Thurs this week. May see a slight reduction if that goes well. Plus the Gov wants to print antoher 600B of which a good portion will be used to buy MBS (mortgage back securities) that would also help to artifically lower rates.

6% is present market.
 

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Floatin dirty
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Discussion Starter #9
So you think hold off for several weeks and see what happens before I convert to fixed rate?
 

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I locked in at 5 1/2% for a 30 year, manufactured, 2nd home. I got lucky because rates were moving when I finally got approval. One things for sure.... they're not going down any time soon.

Definitely not as fast as they went up. We need people back in treasuries asap! The day before the last bond auction the yeild spread has gone up and never looked back.
 

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So you think hold off for several weeks and see what happens before I convert to fixed rate?
Yes, I would wait for now up until at least June 24th. There is a Fed Funds Rate decision on that day, so watch the 10 year treasury yield from now until then. Once you see the yield come down, starting looking into locking your interest rate
 

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Floatin dirty
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4,831 Posts
Discussion Starter #13
Just signed for 5% with Priority Lending at no points today. Fees are kind of high but at least I will have a fixed 30 on the havi house at 5%. Thanks for the help...
 
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