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Real estate editor Maryann Haggerty and columnist Elizabeth Razzi respond to a question adapted from a recent online chat.
Washington: I have a contract on a house and expect to close within 30 days. This week I locked in an interest rate for an FHA-insured loan for 60 days at 5.25 percent.
With the speculation that has come up this week about mortgage interest rates going to 4.5 percent, how long do you think that might take for this to happen? Also, will that rate apply to FHA loans?
Elizabeth Razzi: We're trying to judge the flavor of a cake that hasn't been baked yet. There's no telling what kind of policy surprises will be floated by government officials next, but if I had a loan closing in 30 days, I would grab that 5.25 percent rate and get on with my life.
Maryann Haggerty: The goal of many of the plans being discussed is to jolt the home-sales market. But there's a risk that would-be buyers could freeze their plans to see whether better rates are coming -- the same way many buyers have decided to wait for lower home prices.
The policymakers know that, and it's fair to guess they're taking that into account.
Will this apply to FHA? Again, who knows. The plan in the spotlight this week didn't focus on FHA, but others have.
E.R.: You might take comfort in the idea that you're going through a bout of common buyer's remorse, exaggerated by uncertainty over government policy. It's only natural to worry that what you bought, in this case a 5.25 percent interest rate, is not the best possible. Pat yourself on the back, you scored a great rate.
The next Real Estate Live chat will be 1 p.m. Dec. 19.
