New Home Loan Interest Rate Lock in or wait?

The past couple of weeks it has moved from 4.75% to 4.5% to 4.6%. I was offered 4.5% on a 20 year loan and I told them no and went and rate shopped got an estimate and got them to lock in at 4.25%. The rates move everyday and it is different for each lender everyday. Shop the rate and see if you can get them to match.

Ya one day last week I got 4.375 and no points but locked in the next day at 4.5% and they paid me points that came out to a little over a $1,000.

Shopping the rate is very important. USAA wanted me to pay them $2,000 in points for 4.5. They've been really pissing me off lately

I'd lock to be safe. if you are working with a broker, you can have them hold off sending loan docs to underwriting, go back to broker at 45 and than 30 days, at the 30 day mark, if rate is better, he can switch lenders but has to re-disclose the loan docs.
its worth re-signing the paperwork.
I do that with my buyers.
if dealing with a bank, you cant to that,
I honestly think rates are back on the rise.

So is 4.5 average? Is below 4 possible? I saw rates hit a low today?

I remember going through the anxiety of when to lock a little under 2 yrs ago. Everyday, the first thing I did was check the rates. We waited till 30 days out and ended of with a 30 yr at 3.375%. It was a stressful time.

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Those are insane

Wife and I have 3.50%

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Under 4 is insane.

Take the lock in. The rate is good. While you might be disappointed if the rates get slightly lower (which they might), you'll probably be extremely pissed if the rates go up (which they might)

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30 Year Rates Since 1971

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Holy shite 18% in 1981!!!! How did people buy houses!

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Holy shite 18% in 1981!!!! How did people buy houses!

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We live in the same neighborhood as my in-laws. They bought in 1981 for 78k (18%). We bought in 2006 for 135k at 3.75%.

Blows my mind.

True there are several other variables, but from a broad perspective the majority of homebuyers will be taking out a mortgage and they can only pay so much per month. If they can only afford $1000 per month then at a higher rate more of that money goes to paying interest than to paying off the principal.

Think about it like this, if the interest rates doubled overnight, the same buyer that was looking at a $400k house might only afford a $300k house now(I didn't run the exact math) but you get my drift. Since buyers can only afford so much the price has to come back in like with what they can afford.