As expected, the Federal Reserve cut its key short-term rate Tuesday; the Federal Funds rate is now a scant one-quarter of one percent. The Prime Rate is down to 3.25% – its lowest point since 1955.
Mortgage shoppers, it’s on: rates are now below 5% for fixed rate conforming loans, a decline of nearly a quarter of a percent.
Home buyers in Philadelphia that were planning to buy in the next six months should realize that sooner is probably going to be better than later. Rates may or may not go lower and if you have your application in process you can wait to lock your rate (that is if you think they will go lower). Those who are able to commit to locking are top priority over those who are still shopping rates—this is true with all Loan Originators—they just may not admit it.
Those sitting on the fence about buying will probably loose out. Interest rates are incredibly volatile and fluctuations that used to take months are now occurring in hours. Waiting to obtain the best rate is only possible for those with loan applications already in process otherwise you will lose out.