Kiss 4% mortgage rates goodbye (fixed rate, interest, credit, 30 year)

[sharpie1234]

I found this to be somewhat of a scary article......depends on how you look at it though...

Mortgage rates surge in recent weeks, nearing 5% - Dec. 30, 2010

thoughts?

[Daveydoe]

Don't buy a house unless you can afford 8-10% in the not so distant future

[FCNova]

Originally Posted by Daveydoe

Don't buy a house unless you can afford 8-10% in the not so distant future

If you bought a house now wouldn't you just need to be able to afford the payments based on the current rate, i.e. 5%?

[TimtheGuy]

Originally Posted by sharpie1234

I found this to be somewhat of a scary article......depends on how you look at it though...

Mortgage rates surge in recent weeks, nearing 5% - Dec. 30, 2010

thoughts?

My thoughts are that 5% or even 6% on a 30 year fixed rate mortgage is not scary at all. I would call it very attractive.

[piyf]

But that's with 20% down and almost perfect credit?? If the rate is at 4.75% at any given day most people won't get it at that. And if it gets above 6% I'll just save for 5 yrs and pay straight cash homey.

[sharpie1234]

I refinanced my 30 year into a 15 year at 4% flat this past september. i'm glad i did it given the info in the article!

[VictorBurek]

mortgage rates are still in the 4's for a 30 year fixed.

[MikeJaquish]

Originally Posted by VictorBurek

mortgage rates are still in the 4's for a 30 year fixed.

I recognize the forces that indicate possible support for increased rates.

But, we have been told for 4 years to drum up busienss because rates will be going up, up, up; during which time they have been very attractive almost continuously.

I quit with the "rate pressure" on clients and prospects years ago, not that I ever pressed the topic much.
So... Buy or don't, but don't expect me to beat you up about higher rates coming down the road.

[jaxres206]

I thought that as interest rates go up, home prices typically go down? For me as a prospective buyer, I don't necessarily see it as a bad thing.

[Bideshi]

Prices are going down regardless of interest rates. Higher interest rates just put even more downward pressure on prices. It would be unwise to buy today just to get a 4.75% rate with prices dropping so fast.