As of last Thursday, May 27, the average rate for a thirty year fixed rate mortgage at 4.78%, which was down from 4.84% the preceding week. This rate was the lowest since the fifty year low of 4.71% in December of 2009. (Rates vary according to the area of the country and the particular lender.)
Some analysts believe that it is best to buy now, because if interest rates rise quickly, you would be like having money taken away from you.
Additionally, home prices have not been this low in the San Diego area for years. During 2004 and 2005, the height of the housing boom, I could not imagine that prices seen in today's market would ever exist again.
If a buyer is after a lower priced short sale, it may not be wise to lock in the interest rate for the maximum of fifty-five days, as it may take several months to close escrow on the property being purchased. The price of locking in an interest rate can add up to one fourth of a percentage point to the mortgage as well as occasionally adding a fee should the escrow take a longer time to close.
However, for purchasers of new homes and properties that are not distressed, locking in an interest rate is wise as long as the escrow closes quickly.
