30 Year Mortgage Rate

[Concrete Helmet]

Finished April with 179 closings which was down a little from March. Orders are still steady and it appears purchases are up just a tad but with listings being as tight as they are in this area we're still doing 4 or 5 refi/HELOC to sales...

 

[FireFoley]

Good info Crete. I am selling my home and the market is tight in the "affordable to the masses" price range. so the market is compressing. Higher end coming down, affordable still rising. Interesting that longer rates have risen a bit since the Fed has said no more rate increases per se, but that is exactly what I said would happen. The yield curve will not get back into line until the Fed lowers rates. If they raise the over night rate, longer rates will continue to fall. If they stop or even lower rates, long rates will rise in my opinion (like today). Problem is when 30 yr, fixed hit 5+% a few months ago, home sales stopped, indicating just how high prices truly are and how sensitive the market is to the smallest of rate moves.

 

[BMF]

Finished April with 179 closings which was down a little from March. Orders are still steady and it appears purchases are up just a tad but with listings being as tight as they are in this area we're still doing 4 or 5 refi/HELOC to sales...

Crete, my 26 year old wants to buy a house...so I'm going to buy it in my name and he's going to be my tenant (and then at some point he'll "buy" it for me). What do you suggest I do?

 

[Concrete Helmet]

Crete, my 26 year old wants to buy a house...so I'm going to buy it in my name and he's going to be my tenant (and then at some point he'll "buy" it for me). What do you suggest I do?

Can you finance him? If so a Mortgage Deed......just make sure you have a thorough title search and Owner/Lenders Title insurance policies issued at the time of the transaction(if in Florida). That way your loan is guaranteed 1st position and if he can't hack it you own it and if he is reasonable you won't have to go through the cost of foreclosure.....just deed him off.

 

[BMF]

Can you finance him? If so a Mortgage Deed......just make sure you have a thorough title search and Owner/Lenders Title insurance policies issued at the time of the transaction(if in Florida). That way your loan is guaranteed 1st position and if he can't hack it you own it and if he is reasonable you won't have to go through the cost of foreclosure.....just deed him off.

I'm going to circle back to this....he's looking now (yes, in Florida). Thanks!

 

[Concrete Helmet]

Good info Crete. I am selling my home and the market is tight in the "affordable to the masses" price range. so the market is compressing. Higher end coming down, affordable still rising. Interesting that longer rates have risen a bit since the Fed has said no more rate increases per se, but that is exactly what I said would happen. The yield curve will not get back into line until the Fed lowers rates. If they raise the over night rate, longer rates will continue to fall. If they stop or even lower rates, long rates will rise in my opinion (like today). Problem is when 30 yr, fixed hit 5+% a few months ago, home sales stopped, indicating just how high prices truly are and how sensitive the market is to the smallest of rate moves.

That's pretty much spot on. In our area(Orlando & central Fl.) "affordable" means 175K-400K and that market is like you said very tight. However most listings say 500K and up can expect to spend longer on the market which I guess reflects average wages here.

We always wonder when rates start to go up what will happen but what we've learned over the years is to make our lenders(mostly local credit Unions) our target. Refi's pretty much keep us busy even when the rates rise.....you wouldn't believe how many are due to a court order from divorces judgments, probably 30%, then there's the working people who over spend on their CC's and have to borrow while they have equity to pay off revolving debt and finally since a lot of people can't find a new house they are pulling out equity to improve their home, add a pool or just renovate.....

 

[Concrete Helmet]

Refi's ain't stopping Boy's....May has turned into another record month....71 this week . The only bad thing is having to work most of the weekends to keep up. We'll probably be starting our own records management company to keep the large chunk we currently pay to have an outside company do it now thanks to the 2015 compliance regulations.....time to double down while the doubling is good