Financial Experts - Quantitative Easing vs. Mortgage Rates?

[red95gts]

I know there are a couple financial gurus in here, so I thought I'd ask.

In your opinion, how will QE affect mortgage rates? Everything I read seems to indicate that it would depress the 10-yr Treasury Bond and therefore lower mortgage rates. But, I just read that on the internet so I take it with a grain of salt.

My reason for asking is very selfish - we are building a new home and watching interest rates like a hawk. They've been relatively stable over the last few months at around 4.5-4.75% (Fixed 30yr Conv). We are getting close to the point where I could lock in if I wanted, but I'm curious as to how QE may affect the rates...

Thanks!

[SVT Lurch]

The 10 year Treasury has not been a reliable indicator of mortgage rates recently. As long as there is doom and gloom in the economy it's a safe bet that mortgage rates will stay relatively low. That said as soon as you're able to lock without paying additional fees (typically 60 days) I would do so because rates move up a LOT quicker than they move down. It also helps to think of it like you're buying a stock - when was the last time you bought a stock its lowest price in the market?

Unfortunately we're still not licensed in OK. Apparently you have to have brick and mortar so we're in the process of finding a place.

[slow99]

Just do it. Sub 5% mortgage rates don't even come close to representing long-term lending risk... ie they're dirt fucking cheap.

[red95gts]

Thanks guys. I realize that anything in the 4% range is super cheap. However, the cheap-ass in me always wants to save a couple dollars! haha

We're about 75 days out from closing, so I can't lock in just yet but we're getting close...

Thanks again!

[Vertnut]

Just do it. Sub 5% mortgage rates don't even come close to representing long-term lending risk... ie they're dirt fucking cheap.

That's exactly what I was going to say. I've been around longer (older) than
most on this board, and rates are still near of the lowest in my lifetime.

[SVT Lurch]

That's exactly what I was going to say. I've been around longer (older) than
most on this board, and rates are still near of the lowest in my lifetime.

They're the lowest in recorded history depending on the scenario.

[Vertnut]

They're the lowest in recorded history depending on the scenario.

That's why I didn't say "lowest ever". These A-holes will call you out on about anything. LOL!

[SVT Lurch]

That's why I didn't say "lowest ever". These A-holes will call you out on about anything. LOL!

Which is why I included "depending on scenario"

I wasn't trying to call you out, just pointing out that they're the lowest rates ANYONE has seen, regardless of age.