Does rate climb affect your mortgage decision?

With the climb in interest rates recently many buyers have been inquiring about 10/1 and 7/1 products so I have been experiencing it firsthand. However, every buyer's situation is different. A couple buying a 1 bedroom may opt for an ARM knowing that they plan to have a family and have plans to move a few years from now. Another buyer may have found their dream home and have plans to live there for a long time. Therefore find comfort in a long term fixed product. Nonetheless, most buyers have a payment range in mind when buying and the rise in rates do seem to have influence on bringing other loan products into the mix. Sunny.hong@decapitalmortgage.com NMLS 483661

thanks for the insight, shong.

Rates are still ridiculously low. If a 30yf made the most sense for your personal situation three weeks ago, the bump up to <4% (or whatever it is exactly) doesn't change that.

If the Fed were not actively engaged in buying mortgages and treasuries the 30 year fixed rate would easily be 100 basis points higher. Discussion has already begun about when the Fed curtails Q.E. which is probably in its 8th or more likely 9th inning at this point. Something to consider...

thanks, alanhart. I am not saying I am dumping 30 yr fixed. Doesn't hurt to consider 7/1 or 10/1 alternatives when rate had 0.6% spike in a couple of weeks.

Depends on how long you plan on being there. But if you think you will be there for sometime, go with the 30 year fixed.

Of course rates are still very low.

I recall buying a property in 1987. I got a rate of 12% and was very happy.

Ellen Silverman
E.S. Funding Co.
esfundingco@aol.com
www.esfunding.instantlender.com
NMLS#60631