Ryan's Mortgage Blog:
Hope everyone had a great Independence Day! I was living the American Dream on the 4th...I got to attend the County Fair (bet on some horses, eat fair food and watch the youngsters play carnival games and go on rides) and after attended a huge neighborhood bbq followed by a firework show.

Back to reality...

Mortgage rates continue to lower slightly for the third straight week... In turn mortgage applications inched up last week despite a 2.6 percent drop in refinancings, which meant home purchase applications rose.

Before you get all excited Doug Duncan, chief economist for the Mortgage Bankers Association, has to go and rain on our parade. He was recently quoted as saying he expects mortgage rates to top out near 7 percent by the end of the year.
Hopefully he is wrong, but according to the Mortgage Rate Trend Survey that I have cited before, 6.9% of the professionals surveyed think rates will rise significantly and that is the highest number I have seen in a while, usually it is at 0-1%.
I like to live in the here and now. If you are looking to do a refinance to get a better rate, take cash-out, or to get out of an ARM...I would watch closely to see how far rates drop. I wouldn’t expect them to go much lower, but if your loan amount is fairly large (above $400,000), any fraction of a percentage lower would help save you some money. So I would MAYBE hold off until you think the bottom rates have arrived, which may be sooner than later. If your loan amount is fairly small (below $400,000) waiting weeks or months may just be a waste of time and may cost more in the long run (if you continue to pay on a bad loan you are in now). As far as purchasing goes I have a different take. Unless the rates are absolutely horrible (which they are not), I wouldn't let the market dictate when I purchase my home. I think finding the right home in the right neighborhood at the right price is more important than saving a quarter percent off your mortgage payment. So if you want/need to move now, don't let the market stop you. Rates shouldn't go a whole lot lower than they are now in terms of dictating when you should move. There are tons of loans products out there to cater to your needs (i.e. steady job vs. self employed, a lot down vs. no down, etc...).

I would love to help you assess your financial status of refinancing or purchasing your next home. You can contact me at RBaker@PeregrineLending.com or 805-540-0866.