We’re experiencing the normal calm that happens before the storm, and it’s about to break loose. The Federal Reserve will be making an announcement Wednesday, and is expected to discuss (again) the plan to pull out of the bond market.
If they announce or even hint that they may start to pull out before the before March, rates will likely go up. But if the announcement is more along the lines of needing to wait longer, then it’s likely that rates will improve slightly.
With all the hype surrounding the interest rates and what the market is going to be doing, it’s important to approach it all levelheaded. You can waste so much time and energy trying to pick the best time to lock a loan, but the reality is that just doing it is where the real return on investment happens.
You’ll frustrate yourself to no end if you try to pick “the bottom” on interest rates. They are a moving target, and your best bet is to treat it like the stock market. Jump on the rate when it looks “good enough”. Waiting could cause you to miss your opportunity and you’ll end up trying to buy a home at rates comparable to the 1990’s!