Currently, getting pre-approved with a lender for a FHA loan. Then the FED drops rates and things go crazy.

Wondering if we should wait for a better rates with everything that is going on? We have until July, but we're planning on pulling the trigger this month.

What are your thoughts?

scottimus said:

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Currently, getting pre-approved with a lender for a FHA loan. Then the FED drops rates and things go crazy.

Wondering if we should wait for a better rates with everything that is going on? We have until July, but we're planning on pulling the trigger this month.

What are your thoughts?

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What's your rate and length of term? A half a percent on a 15 year may not really matter much, especially if your are planning on over paying anyway.

On the other hand, if you wait you might get a better deal on the house itself.

I am in College Station...market was starting to go down with the over saturation in growth, recently. We waited from last summer to see what would happen with the market here and have seen home drop quickly.

With coronavirus on top, I don't know where the bottom will be. We have outgrown our current home and do need more space, but are not in a super rush if the deal is worth waiting for...so that is the balance.

Hard to believe that many people would be jumping into buying a bigger house right now. Or buying at all. So much uncertainty. Even in medical field where you'd think job demand would be super high, doctors and nurses getting laid off. Hospitals are cut throat. It's always been about the bottom line for them. Not the people or the patients.

Just an opinion here but I have been in banking and mortgage a long time. There is a limit to how low rates can go. What is that? I don't know but at some point if it doesn't cover the overhead and direct cost of originating the loan it won't be originated. I doubt they can go much lower.

I'm in Houston and I think we are in for bad ride. Though more diversified than before oil still steers the ship and the ship is listing.

I think BCS may be in for a real correction. If the current online delivery of education works out the cost of college will become much less. Why do you need 10 professors teaching English? Just retain the best one and deliver it online. That won't happen now but I have spoken to some parents here in the Houston area that say they might send their kids for the fall semester so the kid can enjoy football and then have them home and online for spring. Reduces housing costs and property owners would have to adapt if it became common. What would the elimination of some significant portion of the faculty and support staff plus reduced student rental demand do to property values? Never mind the reduction in restaurant/bar/hospitality industry if many fewer students were in town. That also decreases demand for primary residential housing. Maybe I'm crazy but reducing by 1/3 or maybe more the cost of college addresses some portion of the student loan crisis if there is one.

I don't know that you're going to see much lower rates but value may decline. However, it sounds like you have a need in the near future and that may not be far enough out to take advantage of any additional value reductions.

This is completely anecdotal, but we closed on sale of our old house this past Monday. We purchased new house last November with a Jumbo. Buyer of old house was conventional loan, 20% cash down.

Title company owner said jumbo market has seized up. Said indications were FHA market was getting limited.

Again, this is a source of one. But, you may want to consider how underwriting will go for you during this process. You may have to show no COVID-19 impact to your income. Who knows.

Rates are good, but underwriting may start getting tougher across the board. Sure there are mortgage guys on here that are way more in tune.

One of my mortgages is 3.125% so I know it can go lower than 4%

scottimus said:

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Currently, getting pre-approved with a lender for a FHA loan. Then the FED drops rates and things go crazy.

Wondering if we should wait for a better rates with everything that is going on? We have until July, but we're planning on pulling the trigger this month.

What are your thoughts?

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The rates can't go much lower, but they also aren't likely to rise anytime soon

The bigger opportunity with timing is the price. Home pricing data is slow to reflect large economic shocks like the one(s) we're in - Corona and Oil Price war.

Honestly I'd wait 6 months because I think home prices will dip 20-30% from where they are today

I'm trying to move from Katy to CS. We've been building a house (builder is financing the build), and had just listed two weeks before everything shut down.

Really tough spot right now.

Here's my call...
Rates will go lower in the next 12 months. I bet we will see sub 3% again. Of all the Texas markets I typically work in, I'm most concerned about Bryan-College Station. Even more so than Houston with $20 oil. If we have a second or third wave of this coronavirus pandemic and students don't come back for the fall semester, BCS is in big trouble. Austin will be fine, DFW will go as the national economy goes except better because it's in Texas.

Also, if you are looking to buy or sell, I'd love to earn your business and create a TON of value for you above and beyond my 2% buyer rebate and $1200 flat listing fee.

YouBet said:

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Mtn_Guide said:

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One of my mortgages is 3.125% so I know it can go lower than 4%

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Nice humblebrag!

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Titles are brags, mortgages are debts.

I have a side business with rental properties and, Thank you, Lord, all but one of my tenants have kept their jobs and the one that hasn't has part-time work for the foreseeable future.

Mtn_Guide said:

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YouBet said:

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Mtn_Guide said:

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One of my mortgages is 3.125% so I know it can go lower than 4%

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Nice humblebrag!

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Titles are brags, mortgages are debts.

I have a side business with rental properties and, Thank you, Lord, all but one of my tenants have kept their jobs and the one that hasn't has part-time work for the foreseeable future.

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Yeah, I know. I like to refer to my parents as land barons. They had 7 titles at one point. Now down to 5.

I want to keep my titles. It's the mortgages that need to go. My retirement plan includes all cash tenants and telling Uncle Sam to go pound sand.

Mtn_Guide said:

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I want to keep my titles. It's the mortgages that need to go. My retirement plan includes all cash tenants and telling Uncle Sam to go pound sand.

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That is my parent's reality.