Increased mortgage rates - Lock in or wait for dip?
Hey BP,
I'm currently in the middle of a purchase contract that will use 30 year conventional financing. Today my lender called me saying that their rates are seeing a bit of deterioration. Specifically, I now need to pay around 0.5 pts to buy down the rate to what we were originally expecting. He said there are two options depending on my risk appetite:
1. Lock in the rate as is, even though it is worse than what we had originally planned.
2. Wait a few days hoping that the rates will improve. The risk is that the rates can deteriorate even further.
Has this happened to anyone else before? What is your thought process for making this decision? Right now, it seems like my decision is based on pure speculation around what will happen with the markets.