Lock all interest rates at application. The unrest in Asian markets is bleeding to the US and traders are more concerned about the inflation risk than the possibility of a recession. Economists believe that The Fed's easy money policy is really an investor bailout disguised as a recession aversion. They think it's compromising the integrity of our economy. As commodities prices (oil, food) accelerate, so may consumer, non-essential prices.
I still favor mid-term ARMs over 30 year-fixed rate loans. We offer a 7-year fixed period ARM at 4.875% (5.18% apr) while a 30-year fixed rate loan is a full percentage point higher.. When you consider that the average hold time for a mortgage is five years, the 7-year fixed period ARM makes a whole bunch of sense.
It should be a volatile week ahead with lots of economic data being released. Keep checking www.mortgageratesreport.com for updates. Want your rate quote and good-faith-estimate reviewed FREE? Fax it to (858)-605-4230 and call (858)-777-9751 to let me know it's there.
