If you're in the market for a new mortgage, it could be for any number of reasons. It could be that the money you want to borrow is intended to buy a home for you to live in, or maybe an investment property. Or it could be used to pay off your existing home loan so that you can refinance into a new lower, perhaps fixed rate mortgage.
It really doesn't matter what the purpose of the
loans for bad credit is; if you're in the market for one, you've probably been keeping your eye on mortgage interest rates. If that's the case, I don't need to tell you that the last few weeks have been anything but kind to those of us 'looking' instead of 'locking' in the super low rates that were available just a few short weeks ago.
So, now that the rates have gone up, what should you do? Should you wait for them to come back down again, or should you lock now before they go up any higher? That is a very good question that no one, not even the so called experts, can answer with any certainty, especially in the very short term (as in days or weeks from today).
However, there is a general consensus out there among both professionals and lay people who keep close watch on these kinds of things that in general, rates are on their way up. Other than normal daily fluctuations of a bit up today, a bit down tomorrow kind of movement, it definitely looks like the overall trend is going to be higher.
My suggestion, especially for someone looking to buy a house that they have their eye on, would be to go ahead and lock your mortgage loan now. First of all, you never know when someone else might come along and make on offer on that house you want, and it would be a shame to lose it to another buyer. In fact, after such a long time of basically NO movement in the housing market, reports suggest that activity levels are starting to pick up, meaning it might not be unlikely that someone else would make an offer on that house.
The other thing to consider is that as more of this kind of activity starts to happen, with multiple bids on homes occurring, that's going to slowly drive the prices of homes back into a mode of increasing rather than decreasing, as we've seen the past couple of years.
While this will be great for the overall housing market and economy in general, it's not so good for the home shoppers. Right now it is still a buyer's market, so you need to take advantage of it. If you don't because you're waiting for mortgage rates to come back down, not only will you possibly lose the house to another buyer, but the price may go up if you don't. Plus, there is NO guarantee that the
loans for people with bad credit rates will come back down, so you might end up paying more than what you could get it for today anyway.
