Mortgage rate question

[LC addict]

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?

[E_]

I would go with a fixed rate only.

[LC addict]

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.

[E_]

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...

[E_]

http://news.yahoo.com/s/ap/20081029/ap_ ... rest_rates