10 yr yield will rise to somewhere between 5 and 6 % by end of year. Big hedge funds are already shortly long term bonds.
Once we get there, 30 year mortgage rates will cross 8% for sure. We will see how long the dam can hold that kind of pressure.
1 Like
New construction: Builders offer 5-5.5% mortgage rate + pay for closing cost.
Resale: Prices have been stable since beginning of the year.
New home prices are also down by 10-20%. Giving mortgage at 2% below market rate means another 20% price cut. Used homes gotta give in. Stubborn sellers.
Nope. Someone will pry my 2.5% fixed loan from my cold, cold hands. Or, more than ikely (hopefully), I will be having a mortgage burning party (WTF is that?) in 2027 or earlier.
1 Like
If you cannot figure out why delinquency rate is all time low while rates are so high, join the club. Even the world’s richest and arguably the smartest guy said he couldn’t make sense of economic data. One day it’s high, another day it’s low.
People want to celebrate the end of the pandemic. They want to enjoy life. Compare this era to the end of WW2. They are sick and tired of being sick and tired. Powell doesn’t understand the zeitgeist of Americans.
It will never happen, but if the govt really wanted us boomers to release some homes to the masses, hey let us have a one time in lifetime ability to sell an investment starter home (use whatever definition is appropriate) with some similar $500K cap gain free policy (married). Yes, there will be cries about favortism, etc, but if you want to increase housing supply you have to think outside the box.
2 Likes
Great idea. But it doesn’t create supply, just possibly creates for sale houses out of the rental inventory. The government can increase supply by relaxing zoning and reducing fees. But in reality it has no interest in increasing supply. Just likes to talk about it.
Yes, of course, not new construct supply but freeing up existing housing stock for new homeowners would have many positive societal results. You can just imagine newbies buying furniture, spending gobs at Home Depot, etc. Not to mention the spin-off from all these owners with a ton of tax free cash to spend.
Agree 100%. But Powell is trying to put the brakes on all economic activity… like Volcker in 1981. I despised that evil SOB.
30 year fixed rate reached 7.55%. Highest rate since October 2000.
I have a smallish commercial loan that I refi’ed a year ago with a program that resets the rate every year. It was 5.4% at the time of refi. I just got a letter in the mail yesterday that the rate is going to jump to 7.75% in a month. Ouch.
.
You form LLC for each house?
No sir. Don’t have no LLC.
What was your decision making process when deciding fixed v floating? What cost difference?
.
No LLC? How come borrow commercial loan?
You can get a commercial loan under your personal name. My lender is US bank. They never asked me whether I want the loan under an LLC or not.
A year ago I had the option of locking a rate around 6.5% for 5 years vs the yearly-reset program. I chose to take my chances with future rates. Now I am paying for my bad judgement.
Rates can still come down through. Recession is coming, right? 
5 Likes
Few hundred $ to thousand more , you’ll be okay
I have to admit, US Bank is alright (personal and mortgage related). I still have a free credit line with them that I can tap in case of emergencies and I believe my rate was prime or near it(?).