Wow. In March 2020 I got a 3.3% rate. But I've already paid off my mortgage.

But I can also remember back to the mid 90s when I believe it was 7 or 8% when I bought my first house in Houston.

Got 2.8% in 2019. Happy I'm not in the market right now or have to put mine on the market.

I am currently in the process of starting a build. I was rushing to submit the contract to our lender yeserday morning to lock in our rate for our construction loan, that would then be converted to a normal loan at the end using that locked in rate (6%).

Long story short we were not able to get the contract in before the announcement that I thought would send rates even higher but it actually brought the rate down on it surprisingly. So I am wondering if I should go ahead and lock in the rate now, or wait it out to see if it will continue to drop.

Buying a 300k house costs the same at 5.5% as a 400k house did at 3.5%. Compared to incomes.

Get ready for the price crash and foreclosure wave.

The few houses that have hit the market in our neighborhood are $200-250k above what we paid, so I'm hoping this market slows down for tax reasons. Harris County did us dry this year, like they did for a lot of people.

As long as you you don't lose your job in the likely coming recession and/or have a way to keep making payments, having a fixed rate mortgage in times of high inflation isn't such a bad thing. Home value is increasing and that payment just keeps getting smaller and smaller. Hopefully you get some adjustment to pay to offset for other price increases.

Sucks for young folks that haven't yet bought their first house.

Blackrock and Klaus on line 1

aTm2004 said:

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Got 2.8% in 2019. Happy I'm not in the market right now or have to put mine on the market.

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We were b*tching and moaning about 3.8% just a few months ago. I'll take it now.

We refied back in Jan of 2020 at sub 3%.

Todayni got a call from Rocket Mortgage that wanted to "talk" to me if I was happy with my refinance. Uh, yes. There's no way I could refinance lower from my OG rate, so what the hell are they calling me.

Then...would you be interested in hearing about our cash out or equity loans?

So they know people are doing this to stay afloat and are being predatory.

"No." *click*

Sub 2.7% in 2020. Looks like I'm riding out the depression in the current house.

Quote:

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Having said that... with Interest Rates rising and a surge in Unemployment to follow.

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Objection: Speculation

We still have overheated and unfilled demand. Open jobs are plentiful. What industry do you hear is laying off folks?

Stock Markets - Page 5506 | TexAgs

Farmer @ had a good post on this about halfway down the page.

DallasAg 94 said:

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More pain to come.

One of the things families have used for liquidity is to pull equity from their homes.

https://finance.yahoo.com/news/mortgage-rates-surge-140025821.html

Quote:

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Mortgage rates this week jumped by the largest amount in 35 years, making home-buying significantly more unaffordable in just seven days.

The rate on the 30-year fixed rate mortgage surged to 5.78% from 5.23% last week, according to Freddie Mac, marking the biggest one-week increase since 1987 and hitting the highest level since November 2008. The average rate is more than two and a half points higher since just the start of the year.

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We all know what happened in November 2008 and into 2009. We entered a banking crisis. For different reasons, of course. Well, not exactly. The reason was the Government intervention and heavy handedness against the people.

Having said that... with Interest Rates rising and a surge in Unemployment to follow... people will not be able to draw equity out of their house, without paying a huge interest rate. True the Fed Rate is not tied to Mortgage Rates, but they are rising none-the-less.

So... what comes after that? Retirement (aka 401(k), IRAs) and Savings draw downs. Which further erode the Market.

The greatest asset for most people is the equity in their house.

Saddle up.

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good post.

the above is why I DID NOT get a HELOC or loan against the value of my house last year when I was planning to buy a second (retirement) home in Florida.

I would rather have the $100,000 in equity I have than pay closing costs and have a loan then try and sell the place in a few years with no equity and upside down after the oncoming real estate crash

I think we should just print more money. That always works, right?

cbr said:

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Get ready for the price crash and foreclosure wave.

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I can't wait! Love me some cheap real estate.

more money in people's pockets than ever before.
biden told me so

aggiebrad94 said:

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Quote:

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Having said that... with Interest Rates rising and a surge in Unemployment to follow.

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Objection: Speculation

We still have overheated and unfilled demand. Open jobs are plentiful. What industry do you hear is laying off folks?

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Mortgage. We've lost 80% of my department since peak.

cbr said:

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Buying a 300k house costs the same at 5.5% as a 400k house did at 3.5%. Compared to incomes.

Get ready for the price crash and foreclosure wave.

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Great time to buy that 2nd home you've been eyeballing for cash when that happens.

Mortgage buyer Freddie Mac reported Thursday that the 30-year rate climbed from 5.23% last week to 5.78% this week, the highest its been since November of 2008 during the housing crisis.

Wednesday's rate hike by the Fed was its biggest in a single action since 1994.

The brisk jump in rates, along with a sharp increase in home prices, has been pushing potential homebuyers out of the market. Mortgage applications are down more than 15% from last year and refinancings are down more than 70%, according to the Mortgage Bankers Association.

Got a 15 yr in 2012 at 2.99 that I aggressively paid down to less than 175k now on a 1.5million dollar house (value now, not when I got the mortgage) that I now wish I hadn't paid down, but ok cause I also have a large cash stockpile wasting to inflation as it is, with no readily apparent investment home in the near term.

hph6203 said:

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aggiebrad94 said:

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Quote:

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Having said that... with Interest Rates rising and a surge in Unemployment to follow.

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Objection: Speculation

We still have overheated and unfilled demand. Open jobs are plentiful. What industry do you hear is laying off folks?

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Mortgage. We've lost 80% of my department since peak.

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And they have the skills to move into one of the many other industries hiring.

aggiebrad94 said:

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Quote:

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Having said that... with Interest Rates rising and a surge in Unemployment to follow.

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Objection: Speculation

We still have overheated and unfilled demand. Open jobs are plentiful. What industry do you hear is laying off folks?

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you can't be serious Clark.

Update: FarEye - 250?
Notarize - 110
SUNY Erie - Layoffs Possible


June 15 , 2022
Stellantis confirms indefinite layoff at the Sterling Stamping Plant MI
Warner Bros Discovery - 1,000 Ad sale jobs
Glenmark Pharmaceuticals Ltd. in NC - 76
Solar Seal LLC in South Easton Facility - 72


June 14 , 2022
Redfin and Compass - 920
Coinbase - 1,100
TIFIN - 21
Wave Sports and Entertainment - 56


June 13 , 2022
BlockFi - About 170
Albert - 20

I'm in the mortgage business, and we have laid off half of our staff. the company will go through another round of lay offs next week.

RosecityAg said:

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Stock Markets - Page 5506 | TexAgs

Farmer @ had a good post on this about halfway down the page.

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Good list, thanks.

Seems to be a common theme for a lot of them: overhiring during periods of strong growth. Laying off to get to a normal employee number does not equal a pre-recessionary environment.

I sold my other house and paid it off. It was only meant to be for a few months anyway.

It's not predatory. It's just the only business that they can acquire at this point. Most people don't carry a mortgage for longer than 10 years. The current interest rates are higher than any rate offered in the last 13 years. Who exactly is going to refinance to a higher rate without getting some other benefit, like cash out? No one.

Purchase and Cash-out and term reduction (and by association rate reduction) is basically the only business that's going to function in this environment. Of those only cash-out is going to apply to a large population of people. Hence they ask you if you want to get cash-out, you say no, and they churn on to the next person. If you're using the equity in your home to stay afloat then you're probably not going to qualify.

You're also underselling the benefit of debt consolidation. 5% is a low rate compared to a lot of personal debt.

Sounds like a good time for the president to put a lid on the week, fly off to Delaware and walk his dog.

LMCane said:

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aggiebrad94 said:

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Quote:

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Having said that... with Interest Rates rising and a surge in Unemployment to follow.

---

Objection: Speculation

We still have overheated and unfilled demand. Open jobs are plentiful. What industry do you hear is laying off folks?

---

you can't be serious Clark.

Update: FarEye - 250?
Notarize - 110
SUNY Erie - Layoffs Possible


June 15 , 2022
Stellantis confirms indefinite layoff at the Sterling Stamping Plant MI
Warner Bros Discovery - 1,000 Ad sale jobs
Glenmark Pharmaceuticals Ltd. in NC - 76
Solar Seal LLC in South Easton Facility - 72


June 14 , 2022
Redfin and Compass - 920
Coinbase - 1,100
TIFIN - 21
Wave Sports and Entertainment - 56


June 13 , 2022
BlockFi - About 170
Albert - 20

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Problem with listing layoffs is that you can do that at anytime. Best way to judge it is now vs history. We are near the lows on layoffs vs the last 25 yrs.

CM Trump Voter said:

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Blackrock and Klaus on line 1

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African-AmericanRock, Hitler!

Home prices are going to come down with higher interest so equity is going to evaporate as well.

EskimoJoe said:

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cbr said:

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Get ready for the price crash and foreclosure wave.

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I can't wait! Love me some cheap real estate.

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Ain't going to happen. With the influx of people from liberal states, there will be too much demand for realestate deals.