Yak Rider asked in Business & FinanceCredit · 1 decade ago

When are 30 year fixed mortgage rates going to follow short term rates down?

Looking for a 30 year, fixed, conventional. Wife and I have good credit scores. If I hold off until later this year will rates be lower?

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  • 1 decade ago
    Favorite Answer

    I'm going to say yes, if you're patient they will go down. It will take about three months for the most recent interest rate cuts to trickle into the economy overall, and I think 30-year rate cuts will follow. We have good a friend who is in the mortgage business and did our refinancing (both times), and I'll call him tomorrow and ask him what he thinks. If I get ahold of him, I'll email you. Otherwise, be patient, and I think rates will go down. (Thanks for the cigar, by the way. I like scotch, hint hint)

  • Anonymous
    1 decade ago

    If you get a 30 year fixed rate conventional mortgage, make sure it's open end which means you can pay it down any time and not be penalized. On the first 15 years on the mortgage, you pay about 70%. That's how they make their money. You should request an amortization so it will give you a break down between interest/principle.

    Source(s): Retired bill collector 35 years.
  • 1 decade ago

    No chances are they will not get much lower. Even though the fed is lowering rates, the banks are not. Banks have lost alot of money and they are trying to get it back by keeping the spread high. A few months ago i believe the difference in the feds rate and mortgage rates was about 1.75% Now its something like over 3% Any discount the banks get right now are not going to be fed to the consumers. They just want their money back from the credit crisis.

  • 1 decade ago

    they will get much lower with th economy spiraling into a recession and probably the next great depression, and since you have good credit, i would hold off for 1-2 years

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  • Anonymous
    1 decade ago

    Hard to tell, election year and all. Seems like if you have good credit you should have no problems with lower rates....

    good luck to you.

  • KathyS
    Lv 7
    1 decade ago

    From what I understand..they are going to rise.

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