LakeCumberlandBoaters.com

My son is bidding on a house, and since last week the interest rates we have been quote on a conv. mortgage keeps steadily going up. If his offer is accepted we have the option to lock in or just let it float. Last week rates with no points/orig fee were just below 6%, now up to almost 6.75.
What is the concensus? Do you think rates will go back down? Is letting it float a smart move or asking fro trouble?

I would go with a fixed rate only.

Not asking about fixed vs variable, asking if we should lock in the rate quoted today or let it float and see if it goes down then lock in when/if it does. Todays rate is 6.75%, Im hoping it will go back down.

that is something that I would not want to touch right now. Decide for yourself... LOL

http://www.hsh.com/2month4cast.html
http://www.forecasts.org/fha.htm
30 Year Mortgage Interest Rate Forecast
30 Yr Conventional Mortgage FHLMC Contract Rate. Percent Average of Month.
Month Date Forecast
Value 50%
Correct +/- 80%
Correct +/-
0 Sep 2008 6.040 0.00 0.00
1 Oct 2008 5.92 0.25 0.42
2 Nov 2008 5.73 0.31 0.52
3 Dec 2008 5.64 0.35 0.58
4 Jan 2009 5.51 0.38 0.64
5 Feb 2009 5.36 0.41 0.68
6 Mar 2009 5.29 0.43 0.72
7 Apr 2009 5.23 0.46 0.75
8 May 2009 5.24 0.47 0.78


http://www.bankrate.com/brm/static/rti.asp


Maybe those sites will help...