Mortgage Rates


#101

Eek 4.4 is so high!

It’s 400/month more to buy the home I bought in 2016 with a fixed rate.

Factoring in appreciation as well as rate gain, it is 1000/month more expensive in terms of mortgage to buy the same home.

  • plus 150/month extra property tax
  • plus about 100k of mortgage interest now not tax deductible

Why are people who willing to pay SO much more today than even 2 years ago? What is going on??!!

I understand the price being high as lots of cities are very expensive relative to income. What I’m struggling with is not seeing what has changed vs. 2 years ago. It’s not like we were in a recession then and recovering now.


#102

One word: FOMO


#103

Stock market is up 30%.


#104

FOMO is real too.


#105

Ok, my Tracie just locked me in on a fairly decent rate I think: 3.875%, 7 yrs fixed for my investment property. Jumbo loan. Not completely free, but only $879.


#106

Some banks in San Diego are offering 6 month CD rates at 4.25-4.30%. I think that is a sign that mortgage rates will be going up soon. They are usually higher than CD rates.


#107

Well, mortgage rates have gone up over the new year and the Fed is expected to continue inching it up in the future. I was hoping for a longer fixed period than 7 years but I will more than likely refi or sell before then.


#108

Which bank or banks? I want to deposit here rather than paying off my 30 year fixed at 3.625%. I need to hold my cash for around 2 years at least.


#109

That’s a good rate. I have a 7 year arm for 3.5% which I got in 2006. Recently, I refied 3 mortgages to 30 yr fixed of 4.375%.


#110

First Financial Guarantee was offering the 4.25%. I saw another ad for 4.30 but did not write it down.


#111

Yeah, she had been trying to hold off on locking for me since the best she could find for me was 4% up until this morning.


#112

What? You decided to not buy a house for 2 years? Even if there’s a correction, it’s unlikely to reach the bottom in 2 year. Next bottom could be 6 years away.


#113

Mortgage rate is pretty high for some banks. The difference between a good rate and bad rate has increased a lot. It’s better to lock in the good rate now when you are given a chance. It’ll go up for sure, just not sure how much.


#114

I’m SERIOUSLY surprised that my house price is almost up 50% in 2.5 years. At this point it needs to fall by 33% to go back down to my purchase price.

Hence for me the conclusion is waiting to buy would not have helped me.


#115

Are those investment property rates? Cause I was able to get 3.5% 30 year fixed in 2016.


#116

What area are you in?


#117

Yes, all are investments.


#118




#119

Ah ok, then that’s not too bad.


#120

Guess I missed the boat for Fremont :disappointed_relieved: