Real Estate
Sponsored by

Mortgage Rate Pop?

14,925 Views | 102 Replies | Last: 3 yr ago by Premium
Boat Shoes
How long do you want to ignore this user?
AG
Hearing talk of mortgage rates moving sharply upward today. Any idea how sustainable this will be? Thanks!
Jay@AgsReward.com
How long do you want to ignore this user?
Sponsor
AG
nope. There was a good amount of margin built into to end investors rate sheets. Therefore a lot of my rate sheets have not changed too much. That might change of course.
Boat Shoes
How long do you want to ignore this user?
AG
Thanks Jay, that's good to hear. What's your opinion on where we go from here in the short term?
SteveBott
How long do you want to ignore this user?
AG
Jay can provide his opinion but mine is rates will permanently move up when the vaccine is readily available. So end of second quarter? Sometime in the 3rd?

There is 1.5-2.0 trillion dollars banked right now that people are going to spend the second half of the year
jja79
How long do you want to ignore this user?
AG
By no way an expert opinion but I think there's great incentive on the government to keep rates low for the foreseeable future. Rising rates would negatively impact the housing market which is such a driver for related industries when someone moves up and buys new household items, etc. There are also still people out there with higher than market rates that can still access the refinance market. When houses sell or someone's payment goes down $200, $400 or whatever that's a form of stimulus to the economy because most of that will get spent.
SteveBott
How long do you want to ignore this user?
AG
FYI here is a good but long explanation of this weeks bump

http://www.mortgagenewsdaily.com/reports/mortgage_rates/2021/1/8/4578
Year of the Germaphobe
How long do you want to ignore this user?
AG
Obviously rates won't stay this low forever, but for the moment in my market area I have had conversations with homeowners saying they are going to refi to sub 3%.

Hope that sticks around for a while longer!
SteveBott
How long do you want to ignore this user?
AG
We are still sub 3. Just not all time lows like summer and couple of weeks ago.
jja79
How long do you want to ignore this user?
AG
The biggest debtor is the government. They need low rates.
Jay@AgsReward.com
How long do you want to ignore this user?
Sponsor
AG
Just getting back to this, but rates on actual investor rate sheets are starting to move up a bit. If you have been holding out for that .125% lower or whatever it might be a good time to get locked in and move forward.
NWE
How long do you want to ignore this user?
AG
I'm locking in our rate in the new build soon as we're going to be moving in at the end of February.

Our lender is about to send us over a 45-day lock as opposed to the standard 30 day. What's the typical increase in rate for an extended lock period like this?

He said "probably want to lock sooner rather than later Bc I don't anticipate rates going lower". How much of this is lip service? Do we generally expect rates to stay high over the next couple weeks? Or is it better to wait it out and when the rate goes lower on a particular day, lock in then?

Just sort of frustrated we've been building this home for months and rates are going to increase the week we lock in. Just my luck I guess.



We have >800 credit and are planning to put 20% down, if that changes any of your responses.
Aggiehunter34
How long do you want to ignore this user?
S
NWE said:

I'm locking in our rate in the new build soon as we're going to be moving in at the end of February.

Our lender is about to send us over a 45-day lock as opposed to the standard 30 day. What's the typical increase in rate for an extended lock period like this?

He said "probably want to lock sooner rather than later Bc I don't anticipate rates going lower". How much of this is lip service? Do we generally expect rates to stay high over the next couple weeks? Or is it better to wait it out and when the rate goes lower on a particular day, lock in then?

Just sort of frustrated we've been building this home for months and rates are going to increase the week we lock in. Just my luck I guess.
Great question.

I don't know the specifics on your loan, but it sounds like your house may not be complete before that time period and a 45 day rate lock with the volatility of the market is a good idea. It really is unfortunate you couldn't have locked even a week or 2 weeks ago. This past week has been crazy and the rates continue to climb each day.
NWE
How long do you want to ignore this user?
AG
Thank you for sympathizing. Not that we can control it, but after monitoring daily for months, I wanted 2.75 or lower. Waiting on the lenders email and I'm expecting bad news. He said they're still sub 3

I'm ready to just lock in and not worry about it anymore.
Aggiehunter34
How long do you want to ignore this user?
S
NWE said:

Thank you for sympathizing. Not that we can control it, but after monitoring daily for months, I wanted 2.75 or lower. Waiting on the lenders email and I'm expecting bad news. He said they're still sub 3

I'm ready to just lock in and not worry about it anymore.
I wish you the best of luck. We built last year and when we closed the market did something similar and we ended up getting a higher rate than if we could have closed a month earlier. The good news was, I was able to do a refinance and get the rate to 2.5%. We had only been in the house about 10 months and it made sense for us. Hopefully the market will do the same for you and you can get it down some in the near future.


BTW, congrats on the new home!



NWE
How long do you want to ignore this user?
AG
Just got the results:

First scenario gives us our incentive toward closing cost and lists a 3.25% rate (!!!!???) is that seriously where it is today?

The second scenario applies the incentive to the rate and gives us 2.875.

While it'll be more up front to close, we're definitely going to do the second option.

I seriously can't believe 3.25 is accurate. Can anyone confirm? Thanks! And thanks for the responses.
SteveBott
How long do you want to ignore this user?
AG
There is a cost to 45 vs 30 but amount is dependent on your lender price strategy.
NWE
How long do you want to ignore this user?
AG
Thanks for the info. I asked about the rate and he says the rate is 3.25 and the lowest is 2.875.

He also added if I find a lower rate, his boss will generally match it.

I want to use this lender Bc of the incentives but is it worth it for me to get more quotes?

It would be a Rooney Rule situation where I'm getting lower rates to not use them but I might ask around if it's worth it.
NWE
How long do you want to ignore this user?
AG
I don't suppose any of y'all would run my info to get me a better rate with my lender?

But if you would and it wouldn't take up too much of your time, let me know!
Aggiehunter34
How long do you want to ignore this user?
S
NWE said:

I don't suppose any of y'all would run my info to get me a better rate with my lender?

But if you would and it wouldn't take up too much of your time, let me know!
I don't mind running numbers for you for comparison sake. Once you shoot me an email I can get more specifics.


bbailey at gomycity.com
SteveBott
How long do you want to ignore this user?
AG
I can run them as well. Basically the 'incentives' is raising your rate to get more compensation from the back end buyer of the note. So you are just really paying yourself.
jja79
How long do you want to ignore this user?
AG
Is this the builder's preferred lender?
NWE
How long do you want to ignore this user?
AG
Yes.

At the beginning of the process I heard all the warnings of the preferred lender so I went to the previous lender I had with my last home purchase.

He ran the numbers and compared the fees and closing costs and said the incentives they offered made their offer v competitive.

So I am aware of the trickery and have always come here or to my previous lender for advice. It appears that the lender is fair... so far....
jja79
How long do you want to ignore this user?
AG
Sounds like a classic builder's preferred lender situation. Usually when they give you something they take back that or more.
NWE
How long do you want to ignore this user?
AG
Got the lender to go down to 2.75 with advice from AggieHunter34. Thanks so much! I owe you.

Sometimes even simple advice can really help. Appreciate those who offered up assistance.

Feel very good with 2.75 today seeing how they're going up up up right now.
SteveBott
How long do you want to ignore this user?
AG
I just got pricing and I'm at 2.75 and pay for the appraisal. Market improved so had to wait for the lenders to adjust
Diggity
How long do you want to ignore this user?
AG
Hey Steve,

Any points on that loan product? I may be looking to refi so we should talk.
SteveBott
How long do you want to ignore this user?
AG
I never price with points. Just market. Pricing with points is deceiving IMO.
Pepper Brooks
How long do you want to ignore this user?
AG
Is there anyway to credibly predict how long rates will stay at/under 3%?
“There is no red.
There is no blue.
There is the state.
And there is you.”

“As government expands, Liberty contracts” - R. Reagan
SteveBott
How long do you want to ignore this user?
AG
Not really. The market is just too unpredictable. There is an old saying about gasoline at the pump.

"Prices jump up like a rocket and fall like a feather ". It applies to mortgage to a tee. We are fairly close to 3 and one good surprise in the market and we can easily cross the line.
hunterjr81
How long do you want to ignore this user?
I bought my house 5 years ago at 3.25%. It honestly just doesn't seem like rates change enough to impact buying these days.

Does anyone think it will go above 4% again? If it does, it is my opinion it will hurt the housing market a lot and with so much money involved, I do not see that happening.
One man that has a mind and knows it can always beat ten men who haven't and don't.
SteveBott
How long do you want to ignore this user?
AG
They were above four less then a year ago and close to five summer 19. So yes they can, and very probably, go above 4 again.
malenurse
How long do you want to ignore this user?
AG
I just locked in 2.25% last Friday on a refi on our house that we purchased last February.
SteveBott
How long do you want to ignore this user?
AG
That's great. Now tell us enough detail so we can make sense as to what koan you got.

I assume 15 year but just a guess. Conventional? Or government loan?

I would need more to offer but this should do for the thread
AggieBusDriver
How long do you want to ignore this user?
AG
What Jumbo loan products are supported by the lenders on this board? I was prequalified with a lender I've used in the past and she quoted 25% down. Her husband's bank has a 20% product - but figured I'd ask here as I'm trying to minimize the down payment if possible.
jja79
How long do you want to ignore this user?
AG
20% is doable up to certain loan amounts. What amount are you looking at?
Last Page
Page 1 of 3
 
×
subscribe Verify your student status
See Subscription Benefits
Trial only available to users who have never subscribed or participated in a previous trial.