Mortgage interest rates rising (real estate, refinancing, loan)

[cybdyb]

Rates are up to 4.25% for 30 year conventional as of today. Higher rates, less demand, more invetory >> home prices fall. I dont know how this will effect houston market but I see the bubble popping sooner than later.

[eastontracks]

they still need to go another percent before anything begins changing imo. if anything, rates being at 4% will make properties move quicker as there will be more urgency to get a deal done from buyers. rates now are what they were 2 years when i bought if not lower. theres still room.

[predatorprey]

Temporary fluctuation in the mortgage markets. An increase from 4% to 4.25% is nothing. Needs to be aloe higher before it affects home sales. It's only about a $40 per month difference on a $300k mortgage.

Refinancing on the other hand is another story.

[PinkLadyK]

Originally Posted by predatorprey

Temporary fluctuation in the mortgage markets. An increase from 4% to 4.25% is nothing. Needs to be aloe higher before it affects home sales. It's only about a $40 per month difference on a $300k mortgage.

Refinancing on the other hand is another story.

Can you elaborate? I've never refinanced -- what is the difference rate-wise?

[ipuck]

Originally Posted by cybdyb

Rates are up to 4.25% for 30 year conventional as of today. Higher rates, less demand, more invetory >> home prices fall. I dont know how this will effect houston market but I see the bubble popping sooner than later.

I know someone that just locked in last week at 3.75. Definitely need to do some shopping.

[predatorprey]

Originally Posted by ipuck

I know someone that just locked in last week at 3.75. Definitely need to do some shopping.

What were his terms? I am almost certain that your friend agreed to pay discount points to lower the rate.

@PinkladyK.
Typically a purchase loan and refinancing rates are the same. Typically in a refinance you need to pay closing costs that can be up to a few thousand with 3-5 year pay back period. Otherwise it doesn't make sense.

As rates tick up the refinancing slows significantly because the math doesn't make sense any more.

Just a comment in that if the interest rate slightly ticks up it doesn't really affect buyers financially, but it would affect refinancing.

[Tya1987]

Originally Posted by ipuck

I know someone that just locked in last week at 3.75. Definitely need to do some shopping.

I am closing on a house in the next 45 days and have been watching rates closely, they may have gotten that a week ago, but they are on the rise, specifically within the last week we have seen a significant bump. Today they improved slightly, and I am hoping for a little bit of a rebound after how bad last week was.

[Houston321]

4.25% Is so dirt cheap it's a joke. The public has become so spoiled with interest rates. They should be at about 6% for a healthy economy.

Less demand? Where are you getting that from?

More inventory? Last check was 2.9 months worth of inventory, again, historically low. Typical is 5-6 months.

***What do you have to gain from constantly being a naysayer on this subject? Are you shorting real estate stocks, have short ETF stocks? What is it. The facts continue to slap you across the face, yet you are in denial.

[Jonathz]

People forget that the building cost is also keep on rising and people's expectation on the new home is also up, e.g. they expect granite, (granite even in the master bath room), hardwood floor, energy efficient home, e-shield, double-pane window, iron stair rods, etc. in the new build homes. All add-up cost increases the new home prices. Basically, part of the reason the new house is getting more expensive is because people are expecting more.

[Dopo]

My interest rate when I bought my first house in 2009 at the moment was very low, and it was 5.25%
I just bought my second house a few weeks ago, I had the option of 3.75% conventional or 3.65 FHA