FROM AP STORY: Average rate on 30-year fixed mortgage surpasses 5 percent this week as Treasury yields jump The average rate on the 30-year mortgage topped 5 percent this week for the first time since April. Higher rates could further hamper the struggling housing market ahead of the spring's prime home-buying season Freddie Mac said Thursday that the average rate rose to 5.05 percent from 4.81... [more]
FROM AP STORY:
Average rate on 30-year fixed mortgage surpasses 5 percent this week as Treasury yields jump
The average rate on the 30-year mortgage topped 5 percent this week for the first time since April. Higher rates could further hamper the struggling housing market ahead of the spring's prime home-buying season
Freddie Mac said Thursday that the average rate rose to 5.05 percent from 4.81 percent last week. It hit a 40-year low of 4.17 percent in November. The average rate on the 15-year home loan, a popular refinance option, increased to 4.29 percent from 4.08 percent. It reached 3.57 percent in November, the lowest level on records starting in 1991.
Rates are following the yields on the 10-year Treasury note, which are spiking on fears of higher inflation. Investors have been demanding higher Treasury yields since the Federal Reserve began its $600 billion bond-buying program to boost the economy.
The payment difference between today's rate and the historically low rate in November on a $200,000 loan is less than $100 a month, not enough to price a buyer out of a market,
If I were buying right now, I would hurry up, before the cheap mortgage ship sails. . .
[less]
Response by truthskr10
over 15 years ago
Posts: 4088
Member since: Jul 2009
"If I were buying right now, I would hurry up, before the cheap mortgage ship sails. . ."
Or offer less for the home to cover the rise in the mortgage expense, yet have a higher interest deduction.
Ignored comment.
Unhide
Response by Riversider
over 15 years ago
Posts: 13573
Member since: Apr 2009
Borrow now or be priced out forever
Ignored comment.
Unhide
Response by sledgehammer
over 15 years ago
Posts: 899
Member since: Mar 2009
That's gonna put more pressure on sellers, not buyers. Buyers look at their monthly payment to see what they can afford.
Ignored comment.
Unhide
Response by aboutready
over 15 years ago
Posts: 16354
Member since: Oct 2007
or it will push people into riskier products, and we'll see the results a few years from now.
last week citi offered us (not that we asked) a 5/1 IO with an APR of 3.2.
let the good times roll.
Ignored comment.
Unhide
Response by w67thstreet
over 15 years ago
Posts: 9003
Member since: Dec 2008
FLMAOzzzzz. That'sike saying the catholic church is a well functioning church, ESP with regards to taking care of wayward young boys!
Assume the mass is made up of despicable individuals. Authority is earned not given. Volcker earned the fed it's respect, Greenspan, Bernie geitner gave it a uti.
Ignored comment.
Unhide
Response by ab_11218
over 15 years ago
Posts: 2017
Member since: May 2009
i rather buy a house for less with higher rates. i'm staying put in my rental for another year unless there's a sweet foreclosure or someone who needs to sell NOW.
Ignored comment.
Unhide
Response by sledgehammer
over 15 years ago
Posts: 899
Member since: Mar 2009
Same here ab_11218.
Interest rates will keep on rising or our Government will simply collapse.
Assuming you put 20% down (like it should be) if you borrow $500K at 5%, to get the same monthly payment if rates go up to 9% in the future, the same house as to sell for $335K or 33% cheaper. That's more than losing your equity, that's being seriously underwater.
Ignored comment.
Unhide
Response by ab_11218
over 15 years ago
Posts: 2017
Member since: May 2009
i'm looking at 50%+ down and waiting..
Ignored comment.
Unhide
Response by sledgehammer
over 15 years ago
Posts: 899
Member since: Mar 2009
M'okay... I'll buy when interest rates hit a healthy 8 or 9% or if i find something that cost less to buy than to rent.
"If I were buying right now, I would hurry up, before the cheap mortgage ship sails. . ."
Or offer less for the home to cover the rise in the mortgage expense, yet have a higher interest deduction.
Borrow now or be priced out forever
That's gonna put more pressure on sellers, not buyers. Buyers look at their monthly payment to see what they can afford.
or it will push people into riskier products, and we'll see the results a few years from now.
last week citi offered us (not that we asked) a 5/1 IO with an APR of 3.2.
let the good times roll.
FLMAOzzzzz. That'sike saying the catholic church is a well functioning church, ESP with regards to taking care of wayward young boys!
Assume the mass is made up of despicable individuals. Authority is earned not given. Volcker earned the fed it's respect, Greenspan, Bernie geitner gave it a uti.
i rather buy a house for less with higher rates. i'm staying put in my rental for another year unless there's a sweet foreclosure or someone who needs to sell NOW.
Same here ab_11218.
Interest rates will keep on rising or our Government will simply collapse.
Assuming you put 20% down (like it should be) if you borrow $500K at 5%, to get the same monthly payment if rates go up to 9% in the future, the same house as to sell for $335K or 33% cheaper. That's more than losing your equity, that's being seriously underwater.
i'm looking at 50%+ down and waiting..
M'okay... I'll buy when interest rates hit a healthy 8 or 9% or if i find something that cost less to buy than to rent.