I hate gambling. I hate it. I hate trying to decide when is the time "to hold up, when to fold up, when to walk away, when to run." I don't like risk, even with the stock market or IRA money-market funds.
When we started looking for a house, the interest rates were low -- 5.625%. By the time we found the house, made the offer, and filled out the formal loan applications, interest rates had gone up to 6.125%. The mortgage officer (and we) figured the rate would surely come down a bit again. But the next day the rates went to 6.25%. The next business day (today) they're up another 1/8. Each 0.125% means another $18/month on the mortgage. So we have to decide when to lock in the rates: now before they go higher? Or if we lock in today's rates, will they just go down tomorrow and we'll kick ourselves for not waiting another day or two?
I HATE gambling!
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There is no reason for rates to go up! The prime has been cut several times in recent months, and there are rumors it will be cut again soon. How weird that yours are going up.
ReplyDeleteThat's what we thought too! And they went up again tonight and are now at 6.5%. All we can figure is supply and demand -- maybe the rates having been low caused an increase in demand and thus an increase in cost of borrowing?? Whatever it is, it is really discouraging.
ReplyDeleteOthers are mystified, too. Saw this posted along with a complaint about the increase at one blog:
ReplyDeletehttp://www.reuters.com/article/marketsNews/idUKN1959403020080219?rpc=44
I was listening to the financial news yesterday and something happened--I wish I could remember what--that is making credit scarcer and more expensive for us normal folks.
ReplyDeleteThey're saying it will effect student loans, too.