We’ve been looking at homes since August, and now we’re under contract. We started working with a lender around the time of the Fed announcement, which was better for borrowers than some thought. The rate we were offered for a 30-year mortgage was 5.5%. Looking back, we should have locked in that rate. It has steadily gone up to 6%. I know rates have increased again since mid-September, but is our lender taking advantage of us because we need to close soon (next week)? I’d appreciate any advice.
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If you didn’t lock in your rate, the rates have increased. Your lender isn’t taking advantage of you; the 10-Year Treasury has risen significantly following the stronger-than-expected jobs report that was released.
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It may be a slight temporary fluctuation if you can be patient.
In general, the trend is still moving downward.
You missed out. I secured a refinance on 9/12 before the Fed’s announcement. I expected it might drop a few more basis points, but not enough to take the risk. I keep an eye on the 10-year yield.
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I secured the deal on the same day, and I haven’t come across a better one since, haha.
I agree. I secured a 5.5% rate with no costs on the same day the Fed lowered the rate. I closed today.
You’re lucky; I’m still waiting on these guys. I’ll need to make one more mortgage payment at 7.5%.
It’s your decision to lock; why didn’t you do it?
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They took a gamble, and now that they’ve lost, they blame someone else.
Someone mentioned that rates are expected to decrease even further. I hear that frequently. I typically suggest that they lock in their rates, and if there is a significant drop, we can use a float-down option.
They are decreasing, but it will take time.
No, the lender isn’t exploiting you. Interest rates fluctuate daily, and they rose significantly on Friday due to a positive jobs report.
The Fed’s rate cut doesn’t impact the average person. It’s the borrowing rate for banks, which doesn’t affect us in the real world. However, it will eventually decrease.