Is It Really Time To Hold Out for Lower Mortgage Rates?

Even though there are weekly releases of average mortgage rates over the span of a week’s time, the fact of the matter is that mortgage interest rates change faster than that. Indeed, mortgage lenders have been updating rates around every four hours. Things are quite volatile right now. But with economic data getting ready to come in this week, a technical end to the recession and the possibility that the first time home buyer tax credit will be extended, things are likely to inch a bit higher overall.

And this makes sense. Mortgage rates rise faster than they fall. Dan Green at The Mortgage Reports points this out about holding out for lower mortgage rates:

Unless you’re willing accept a higher mortgage rate, stop trying to beat the market for a lower one. More often than not, you’re going to lose.

This is especially true because mortgage rates tend to rise a lot faster than they fall.  We even having a saying about it in the business: Mortgage rates take the elevator up and the escalator down.

The bottom line is that a small change in mortgage rates isn’t going to impact you a great deal. Holding out for 1/8 or even 1/4 of a difference may not be worth it. In the end, you have to figure that right now, mortgage rates are better than they have been for years. Nearly any rate you get is going to be a victory. And, just like trying to time the stock market, trying to time the mortgage market is not likely to work all that well for you.