Mortgage rates

Discussion in 'Business, Investing & Finance' started by Zambo, Jul 3, 2019.

  1. Zambo

    Zambo Poo Flinger
    Lifetime Member

    Joined:
    Jun 12, 2014
    Messages:
    8,116
    Oxbucks:
    $8,022
    Ratings:
    +16,400 / -159
    Just thought I'd throw this out there for those who don't pay much attention to this stuff. Mortgage rates are heading back down, so if you've been thinking about purchasing a home or refinancing your current note, now is probably a good time to start shopping.

    Just beware of rate quotes that seem too good to be true. They usually are. You get weeks into the process and now are up against the closing deadline, then they tell you that some aspect of your life and/or finances don't fit the guidelines for that rate, but they can still offer you X+ rate instead.
     
  2. NVGator

    NVGator Member
    Lifetime Member

    Joined:
    Jun 11, 2014
    Messages:
    9,387
    Oxbucks:
    $5,471
    Ratings:
    +9,163 / -431
    I was just headed here to post an update on 30 year rates. 8th month in a row it's gone down. We've had clients already refinance that purchased last year because they could save over a point or point and a half.



    Screen Shot 2019-07-03 at 10.02.36 AM.png
     
    • 78

      78 Dazed and Confused
      Lifetime Member

      Joined:
      Jun 9, 2014
      Messages:
      15,354
      Oxbucks:
      $12,804
      Ratings:
      +18,816 / -932
      The housing market could use it. It's been in a slump. SALT caps are partly to blame.
       
    • Concrete Helmet

      Concrete Helmet Hook, Line, and Sinker
      Lifetime Member

      Joined:
      Jul 29, 2014
      Messages:
      11,548
      Oxbucks:
      $5,556
      Ratings:
      +9,862 / -626
      Closed 200 plus last month.....again. We'll be hiring another full time closer next week when we get back from vacation.
       
      • FireFoley

        FireFoley Senior Member
        Lifetime Member

        Joined:
        Nov 19, 2014
        Messages:
        2,801
        Oxbucks:
        $2,240
        Ratings:
        +3,518 / -205
        I do not really think housing has been in a funk, I think that prices are just too high for the average person. It is why I think that another tick down in mortgage rates is fool's gold for most people b/c almost everyone is only buying a monthly payment, they are not truly "buying" a home. They only care about the max they can afford. and just like when mortgage rates breached 5% in 2018 and housing truly died, it will happen again if rates approach 5% again. those buying at elevated prices will see just how buying that monthly payment can be dangerous if they go to sell b/c they need more space, etc. I would only recommend re-fiing the amount that you owe, as opposed to purchasing the max you can afford. If you are buying within your means and you plan to stay, then I understand. otherwise, these low mortgage rates can be a big problem down the road.
         
        • FireFoley

          FireFoley Senior Member
          Lifetime Member

          Joined:
          Nov 19, 2014
          Messages:
          2,801
          Oxbucks:
          $2,240
          Ratings:
          +3,518 / -205
          I do not really think housing has been in a funk, I think that prices are just too high for the average person. It is why I think that another tick down in mortgage rates is fool's gold for most people b/c almost everyone is only buying a monthly payment, they are not truly "buying" a home. They only care about the max they can afford. and just like when mortgage rates breached 5% in 2018 and housing truly died, it will happen again if rates approach 5% again. those buying at elevated prices will see just how buying that monthly payment can be dangerous if they go to sell b/c they need more space, etc. I would only recommend re-fiing the amount that you owe, as opposed to purchasing the max you can afford. If you are buying within your means and you plan to stay, then I understand. otherwise, these low mortgage rates can be a big problem down the road.
           
          • NVGator

            NVGator Member
            Lifetime Member

            Joined:
            Jun 11, 2014
            Messages:
            9,387
            Oxbucks:
            $5,471
            Ratings:
            +9,163 / -431
            I truly don’t know what the furk you are talking about. I posted a graph with the rates month over month since 2012. They haven’t breached 5% since then. Housing didn’t “die” in 2018. Maybe your neighborhood took a shot but it far from died.
             
            • FireFoley

              FireFoley Senior Member
              Lifetime Member

              Joined:
              Nov 19, 2014
              Messages:
              2,801
              Oxbucks:
              $2,240
              Ratings:
              +3,518 / -205
              It did not last long but there was a short span where the avg. 30 yr. mtg rate ticked above 5% in 2018. As soon as it did, it caused practically every region to see a slowdown in home buying interest. As I said it lasted only a split second, but if you read the articles the interest in buying was seen immediately. It won;t show in a monthly chart b/c it did not last long. That is all I am saying.
               
              • Concrete Helmet

                Concrete Helmet Hook, Line, and Sinker
                Lifetime Member

                Joined:
                Jul 29, 2014
                Messages:
                11,548
                Oxbucks:
                $5,556
                Ratings:
                +9,862 / -626
                We saw a short period where our local lenders went to 5.0 and a little above. It had little effect on refi's, maybe down 10% for a month or 2. The biggest problem in our area is lack of affordable or starter houses, 200k-400k. If you're looking in this area in that price range you'll be looking for probably close to a year as one of our young employees and my stepson just found out......and as you mentioned you also run the risk of buying a overpriced house right now when things pull back.

                Still as I told my stepson a few month's back when he bought, it's better to pay to buy than to rent as houses in the 1400-1800sqt are starting to rent for $1600-2000 monthly.
                 
                • Gator By Marriage

                  Gator By Marriage A convert to Gatorism
                  Lifetime Member

                  Joined:
                  Dec 31, 2018
                  Messages:
                  3,841
                  Oxbucks:
                  $5,839
                  Ratings:
                  +5,971 / -96
                  A realtor friend of mine who works in the NW ATL suburbs said the same thing about houses in the 200-400K range in her area.
                   
                  • NVGator

                    NVGator Member
                    Lifetime Member

                    Joined:
                    Jun 11, 2014
                    Messages:
                    9,387
                    Oxbucks:
                    $5,471
                    Ratings:
                    +9,163 / -431
                    There isn’t any more affordable housing anywhere in the country. The market has pushed back up outside of what a middle class family can afford. Wages aren’t matching housing prices.
                     
                  • Concrete Helmet

                    Concrete Helmet Hook, Line, and Sinker
                    Lifetime Member

                    Joined:
                    Jul 29, 2014
                    Messages:
                    11,548
                    Oxbucks:
                    $5,556
                    Ratings:
                    +9,862 / -626
                    We've had that problem here in Central Florida for decades now. When times are good and employment high lenders often allow people to push upward into houses they really shouldn't be in. This is a highly service industry influenced area so even when business is up wages may not follow...
                    We have seen some price stabilization(not stagnation or decline)lately but listings are a tight nut to crack for even some of the areas better Realtors. Thank God for refi's....
                     
                  • Bushmaster

                    Bushmaster Well-Known Member
                    Supporting Member

                    Joined:
                    Jul 27, 2018
                    Messages:
                    830
                    Oxbucks:
                    $1,346
                    Ratings:
                    +1,358 / -73
                    Someone above mentioned people are not buying a house, they are buying a payment. That payment is made up of two factors, price of home and cost of funds (interest rate). Price of home is dependent on the market. Market is driven by demand., etc. That rabbit hole can keep going and going.

                    Cost of funds is dependent on the mortgage interest rate. In the short run, people have x dollars to spend on housing. If interest rates drop, housing prices will increase because people can buy more house (more house cost actually) for the same payment. When the rates creep up, they can afford less house cost for the same payment. Sellers are reluctant to lower house prices because of comparisons and realtors want to keep those high as well.

                    It will take a little time for all that to level out. So in the short run, its not that there is less demand for housing, its just that prices haven't adjusted for changes in the interest rates.
                     
                  • LagoonGator68

                    LagoonGator68 ###BANNED###
                    Lifetime Member

                    Joined:
                    Jun 12, 2014
                    Messages:
                    5,492
                    Oxbucks:
                    $1,331
                    Ratings:
                    +3,576 / -169
                    Location, location, location
                     
                    • BMF

                      BMF Bad Mother....
                      Lifetime Member

                      Joined:
                      Sep 8, 2014
                      Messages:
                      12,901
                      Oxbucks:
                      $13,114
                      Ratings:
                      +18,757 / -266
                      Saw this today...and it screams "you should buy some rental properties!":

                      Estimates: Florida Growing to 22 Million Residents by 2022

                      https://www.usnews.com/news/best-st...orida-growing-to-22-million-residents-by-2022

                      ORLANDO, Fla. (AP) — State demographers estimate Florida's population will surpass 22 million residents as soon as 2022.

                      Forecasts released earlier this month by the Demographic Estimating Conference estimate that Florida will grow an average of 330,000 people a year over the next five years.
                       
                      • NVGator

                        NVGator Member
                        Lifetime Member

                        Joined:
                        Jun 11, 2014
                        Messages:
                        9,387
                        Oxbucks:
                        $5,471
                        Ratings:
                        +9,163 / -431
                        From an email I received this week...

                         
                        • LagoonGator68

                          LagoonGator68 ###BANNED###
                          Lifetime Member

                          Joined:
                          Jun 12, 2014
                          Messages:
                          5,492
                          Oxbucks:
                          $1,331
                          Ratings:
                          +3,576 / -169

                          I raff out roud when I read about the NARROW Straits of Hormuz and it’s illogical effect on oil prices, as if anything about oil prices is logical....

                          The Straits are 35 to 60 miles wide. Just another excuse to manipulate prices up....
                           
                        • GatorInGeorgia

                          GatorInGeorgia Senior Member
                          Lifetime Member

                          Joined:
                          Aug 25, 2014
                          Messages:
                          3,383
                          Oxbucks:
                          $2,364
                          Ratings:
                          +2,921 / -169
                          That would be an awfully long swim back to shore for the Iranian fast boat crews that harass our naval ships...were we ever to blow a few of them out of the water.
                           
                          • bradgator2

                            bradgator2 Internet Bully
                            Lifetime Member

                            Joined:
                            Jun 12, 2014
                            Messages:
                            5,986
                            Oxbucks:
                            $4,413
                            Ratings:
                            +10,655 / -76
                            Alright.... even though my current 30yr is decent (3.875%) and I have been paying bi-weekly for years (so I am way ahead), I have decided to throw in my towel and shoot for a 15yr at 3.25%. No cash out. With my current balance, payment will rise $265 a month, but I will save $123,000 in interest. Let’s see if this goes down and closes.
                             
                            • FireFoley

                              FireFoley Senior Member
                              Lifetime Member

                              Joined:
                              Nov 19, 2014
                              Messages:
                              2,801
                              Oxbucks:
                              $2,240
                              Ratings:
                              +3,518 / -205
                              Congrats and best of luck. That is the way to do it. Don;t take money out but I love how that 6 figure savings looks over time. I am not telling you to wait, I promise. But my prediction is that the 15 yr. mortgage will approach the lows of around 2.75 that the were about 6 or seven yrs. ago. With the 10 yr. Treasury easily breaking 2% on the downside today, I am seeing it challenging its all time low yield of 1.35% sometime in the future. With over 16 trillion dollars of sovereign debt now with negative yields I have a hard time not seeing our treasuries going near zero. The only caveat is the size of debt we have to issue to fund the deficits (thanx to those DC idiots), but with negative yields worldwide I see plenty of foreign governments buying our paper just to get some type of yield.
                               

                              Share This Page

                              The Box

                              Help

                              You don't have the necessary permissions to use the chat.

                                1. There are currently no users chatting.
                                  • About Us

                                    Our community sprung up when the Gatorsports message board was shut down in the summer of 2014. We pride ourselves on offering Gator-biased, yet critical discussion among people of all different backgrounds. We are working every day to make sure our community is the best Gator message board you will find.
                                  • Like us on Facebook

                                  • Buy us a Zima!

                                    The management works very hard to make sure the community is running the best software, best designs, and all the other bells and whistles. Care to buy us a non-alcoholic Zima? We'd really appreciate it! Just click the "Donate" tab at the top of the page.