Rates changed 4 times today!

[White92]

I was looking at refinancing this morning. Rates were at 5%. By closing today they are up to 6%. I was told they changed 4 times throughout the day. What do you think they'll do in the next few days? Is this a good time or not? I'm at 5.75 right now.

[LK1]

It was lots of fun today (sarcasm). Rates started out great this morning, my phone was ringing off the hook with clients wanting to refinance and ALL of the lenders web sites were crashing or slow making it impossible to lock in the rates. We were trying to call and fax in rate locks and lenders will not honor them
By the end of the day the rates were back to where they were yesterday and any advantage was gone.
My email box was clogged with reprice notices from lenders. Four times in one day.
The bond closed up tonight meaning that rates tomorrow will not be starting out favorably. What comes next? Who knows?
My advice: find a mortgage broker you trust, give him an acceptable range, discuss whether you are willing to pay points and closing costs and pull the trigger as soon as you get into your acceptable range.

[sahtt]

Should have been around a trading desk. 632 point swing from Armageddon to some government employee in NY is going to save the bond market. I like volatility so no complaints from me.

[nsxotic911]

Why are they fluctuating so much?

[SilverStone05]

Why are they fluctuating so much?

Variety of factors affect mortgage rates....one of those factors is supply and demand. With all of the uncertainty surrounding the housing market and all the media buzz touching on recession issues, mortgage rates are going to be bumpy. And even though the Federal Funds Rate has only an indirect effect on mortgages, the fact that it was cut 75 basis points on Monday has some to do with the jumpiness.

The best indicator of mortgage rates I've come across is the 10 year treasury. When the yield on the 10 year drops, mortgage rates usually drop as well......usually.

I'm closing on a home at the end of next month and I'm debating on when to lock my rate. I'm betting on rates falling a little bit more.