30-yr rates are still GREAT, although they did have a light bump back to 4.75%, as of today. The Dow Jones Industrial Average is toying with the 10,000 mark – FYI, the stock market was, last week, at its highest since Oct, 2008 – an encouraging sign, to be sure, but investors are still being cautious. The question is WHEN the Fed will start tightening interest rates. It is consensus that rates won’t go noticeably lower, but they could spike suddenly with economic environment changes. Most lenders will allow a borrower to float down if rates drop significantly (although , usually, for a slight price hit). Floating right now is not for the faint-hearted.
Ginger Sullivan, Anasazi Mortgage