USCTrojanCPA said:Cares said:Buyers and borrowers both are asking me if they should wait to buy a home because housing prices have not "adjusted" to increased interest rates yet.
I think the housing market is still hot and in good shape. Increased purchase interest rates is only going to thin out the field but there was so much competition previously. Inventory is still lacking so I don't really see interest rates having a major impact on prices.
Yeah, it'll only decrease demand on the margin as people are priced out and others wait for an adjustment to prices for the higher rates. One issue is that prices can be very sticky on the way down as comps always lag (i.e. we see homes that got into contract a month ago start closing now).
HMart said:And Owning.com's homepage rate is up to 3.625% no closing costs 30yr <$822k. Insane
Soylent Green Is People said:It's possible their secondary department bought a block of funds and must parse it all out before the turn of the month. This practice isn't uncommon for larger mortgage bankers.
If it's a real deal, take it. If it's just to make the phones ring, run.
GenericIrvineResident said:ChiKid24 said:Heads up that rates are coming back to the prior lows. If you missed it before, take another look. I closed with Lenderfi in August on a 30-yr at 2.75% for zero cost (credit to cover closing fees). They ask you to hold the loan for six months but offer a no cost redo if rates are 0.25% or more lower. Im coming up on that so called my loan officer there last week and was able to lock at 2.375%. Loan is just over $710k, so super conforming. Expect to close within a month.
2.375 for a 710k loan is pretty great. What's the monthly payments look like on that sized loan? $4k?
Was that the option where you pay 10k or so upfront to get that rate? I was given two options 2.5% at little to no closing costs and something like 2.375 if I put up 10k upfront. My loan size is a lot lower than 710 though.
Cares said:From a technical perspective, we've reach Death Cross (50 day moving average crosses below 200 day moving average) yesterday. Historically this has only happened a few times in history 2008 and 1929 being 2 significant times. This has signaled recession and bear markets ahead from all previous occurrences. Lower mortgage bonds and higher interest rates ahead.
Cares said:10 year treasury is 1.74 this morning and a new ceiling has been raised from 1.60% to 1.94%. Powell's address, or lack thereof, did not help the case either.
Soylent Green Is People said:1.5 was the line in the sand. Now 1.75 is a red line. A 2.0 handle is next. Quite a bit of pain in the short run ahead. Once 2.0 is inevitably hit significant intervention is bound to occur.
My .02c