Mortgage rates

Didn't you post a while ago that you locked on a mortgage?

Yes I did. I had fully expected rates to go down and negotiate for a one time reduction.

addicted to rates--can't let it go

Relax.

I do feel like an addicted rate watcher.

what rates are out there right now for the 30?

Juggs.com has rates at 3.69%.... Betta get to that site quickly. When in France, I broke down and had a Le big mac. With the euro and all, I was pushing my budget. Then frenchie wanted .5 euro for ketchup. I kept waiting for the ketchup prices to drop....x

you went to france and had a big mac? how sad

anyways, back to my question about the rates

They use horse meat at French MacDonalds. Am I allowed to say "horse meat" on streeteasy?

And can you say French?

About 4.75% for a Manhattan (non jumbo) condo/coop 30 year today.

Loking like 5% these days.

Déclassé, what owner gets a mortgage? Say it in French.

Hey where is my bunghole sniffer? I need her to ensure that my bunghole cleaner did her job correctly.

Yep, we've entered the 5s for the most part. Which isnt bad at all but everyone got spoiled with rates being in the 4s for awhile, including me. This may be an over reaction in the market with news after news - QE2, extension of tax cuts, inflation, jobs reports, europe, north korea, etc. Things will settle. But I dont see rates coming back down to what it was a month ago. sunny.hong@bankofamerica.com

Mortgage Rates are not as correlated to home prices as jobs are. I see two probable outcomes of this though.
1) People buy less home, since they still back into a bid(present value of payments) from the mortgage chosen.
2) People push up home purchases and buy now instead of next year for fear of missing the boat(buy now or get
priced out logic). In this scenario an expectation of rising rates may increase housing demand in the
short run.

WOW! Yeah, you know guys, sorry about RE being down this yr and last, but we got so so so used to the 20% yearly appreciation to keep things humming along...... just a momentary break bf it goes up 20% again, and BofA pays good bonuses, Lehman can hide all its debt, ppl can jump a few income levels and dogwalkers can get $3MM loans for studios again!

Just hang in there, it'll come!

5%, oh what's 100bps amongst friends? 6% => just a debt mkt hiccup, 7% => come on, RE is money good, 8% => it's a home!, not an investment?, 9% => back to "historical" levels, no worries, 10% => just catching up to europeans, 11% => I'll admit IR r starting to get a little heated, but RE is still a good investment, 12% nothing compared to Volcker 19%, 13% => I've had car loans more than this, 14%, this is tax deductible, 15% man I paid 20% on my first credit card, 25%=> okay RE is starting to hurt a little, but look HOW cheap it is.

ME?, oh I sold my RE when IR was at 4%, cause I'm a banker from BofA and knew I could buy my 3bdrm in CPW for my downpayment when IR hit 9%, I'm not a bankster for nothing.

Hilarious progression, w67.

Rates going from 4-5% is not a big deal.
If rates start pushing 7% or more and we don't have a corresponding increase in wages, then I agree we have a problem. Nobody is currently predicting 7% mortgage rates for 2012.

noone predicted the rate going up .75 in a month either. if they keep going towards 6% in 1/2 the pace, the prices will have to fall to adjust and fast.

While a certain group around here wrung hands over where rates are going, I locked 3 weeks ago at 4.5% on a jumbo manh coop 30yr fixed re-fi and closed today. Lowering monthly payments by about 18%. I certainly cannot be the only one to figure out how buying could be about equal to or lower than renting in Manh. I was good before the re-fi. The re-fi makes our decision to buy not carry any discernable premium over renting. (FYI--we're talking GV prime large 1-bdrm).

> If rates start pushing 7% or more and we don't have a corresponding increase in wages, then I agree we have a problem. Nobody is currently predicting 7% mortgage rates for 2012.

8% will not be high but normal. so expect that down the road imho.

on a $500k property if mtg rates go from 5% to 8%, pricing will have to drop by around 25% to keep payments constant. why would you take that risk now?

noone predicted the rate going up .75 in a month either.

Swaption volatilities are out there and everyone sees it. One has to be aware of what's a one, two , threee standard deviation move, as opposed to tail risk. 7% is tail risk.

(old man nasily voice)..... hmmmmmm.... ha ya gotta look at swaption volatility to pre-predict the duration shift of the A-gamma corresponding delta of shelter based leveraged asset. It helps if the vulva gods of jupiter is lined up perfectly with trojan water based lubricating cream made in the little town of Bergen, Norway. The function slides in and out much more easily that time of year. The fish oils are supposedly amazing for genital herpes.

hhhhhhmmmmmmmm... cough cough.... nurse, can you wipe the yellow drool from my mouth...... now where was I? Oh yes, the delta shift of the second derivative of the duration function of a known quantity of negative financial carry has no impact whatsoever on any of my shelter based assets, although highly negatively correlated to "real" assets.... just doesn't affect my shelter based assets.....

nurse please, keep up and clean out my number two bag, r u a new nurse? or do i have to tell you again I shit in a bag?

good on you kylewest... now let's see you sell that baby? wha wha wha? whatda ya mean you can only afford 75% of my price cause interest rates went up?!?? Fk u, I ain't selling... i'm gonna pretend I'm a financial genius and NOT EVER SELL!

-twilight zone dude voice-
-what you have just witnessed, my friends. Is the RE lemming equivalent of "If you can't play by my rules, I'm taking my marbles home."-