FHA Mortgage Rate Dropping or Rising

[Kyle Brown]

All, I am in the middle of purchasing a duplex using FHA Loan and I am trying to lock in a rate. The past couple of days it has been at 4.25%. Is that a good rate or should I wait it out and see if it drops?

[Christopher Phillips]

@kyle brown

Fed just raised their rates, so mortgage rates have gone up accordingly. Fed is looking to raise their rates possibly 1-2 times more this year. Eventually, the rates have to go up anyway because banks can't make money at these rates.

If you are in the middle of a deal now, I wouldn't expect rates to rise suddenly without a major fluctuation in the system. Since the Fed already announced their expectations for the year, I wouldn't expect any major decreases in the next few months.