Going into next week, rates are squarely in the mid-4s, and 0.5% lower than November’s 7-year highs. Should hold next week as shutdown-cancelled data releases quiet rate markets.
All you active home shoppers must remember rates are now as low as at any point in 2018, and holding for lower is very risky. Your driving force is not finding a perfect rate bottom, it’s finding the right home in time for family/school or life schedules hitting in the coming months.
It currently takes about 4.5 months to find a home, and you have zero control over rates between now and the time you find The One.
IF rates drop after you close on your dream home, it’s easy to refinance to gain that financial benefit. Yes there are closing costs on a refinance, but just ask your lender now to tell you how long it would take monthly savings on a future refi to repay the costs of the refi.
And also remember that bidding wars are calmer in most markets now as home sales cool a bit (both for 2018 and because this time of year is quieter). If rates drop, bidding wars will heat up again and drive up your offer prices.
It’s a pretty sweet spot for homebuyers right now.
For you market obsessives, rate guru Matt Graham has this week’s full rate market details below. Check it out, but don’t forget what I said above.