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I agree with SmartMoney. I expect rates to continue up for the next few years but that depends on President elect Trump's following through on his proposed economic policies (and them working), and upon far reaching events we have no control over. For example, a major banking collapse in the ECM could affect rates, as could a major disruption in US trade with any of our bigger international trading partners.
In a market like this it is best to have good advice from professionals on when to lock in your rate, and a dose of good luck will help too!
Be careful your rate lock won't expire before your escrow closes.
Yeah, a worry right now; contract has a contingency about securing the mortgage at 4% or less. I have no idea if they locked in or not, and when it happened and at what rate. Anybody know what the going rate for a conventional mortgage for someone with good credit (assuming that) is now? They're going through a credit union.
Currently 4.5 percent for a 30 year fixed. Will easily be 5+ by feb...
Every day I feel better and better about my commercial mortgages (SFRs) purchased in 2014. Commercial rates are generally around 1% higher than owner occupied rates, and today's market for owner occupied rates are about what I'm paying for my rental houses.
I think strickforce's prediction is overly pessimistic but I wouldn't bet against it.
Also noting the market in my area (Phoenix) appears to be really hot, a strong seller's market. Could be caused by people who see their last chance to get their house before rates become burdensome.
I have a SFR sale coming up soon and I'm excited, expecting a fast transaction!
Currently 4.5 percent for a 30 year fixed. Will easily be 5+ by feb...
Interesting because our contract also has a contingency that the buyer be able to get conv. mtg 4%. My agent says not to worry because if I were buying, she would state the same for me; but the buyer has the right to decide to go ahead anyway if the rate is higher, which now I guess it is.
What I don't like about this whole process is that everything is so vague for the seller. It says in black and white 4% but apparently doesn't mean has to be 4%. I'd bet if buyer wanted out they would use one of those loopholes that my agent is saying doesn't really matter.
Not a professional, but it seems to me that if the rate lock expires the buyer has the choice of accepting the higher rate or backing out and losing their earnest money.
I do not think we will be at 5+ by February. The economy would have to really heat up for that to happen. The stock market is having a feel good run - every talking head is preaching correction to the Dow and to rates once real year end numbers come in. Think about it, the only thing that has really happened in the market is Trump was elected. Lol, we have one heck of a rough ride ahead of us. Will rates go back to their lows? I do not believe so, but there is room for improvement.
I agree with SmartMoney. I don't see mortgage rates rising to 5% in February. The recent rise in the stock market was fueled more by optimism, and the same to some degree on speculation of Trump's success in revving up the economy (and on the recent Fed rate increase). In the coming months both interest rates and the stock market will probably be based more upon current market conditions (such as the success of Trump's economic policies and how quickly they happen). However I expect at least one more Fed rate increase so I think it is entirely possible, maybe even likely that we may see 5% mortgage rates at some point in 2017, maybe even higher.
I suggest that people who are considering a purchase of a home this year should give serious thought to buying sooner rather than later, because I see no way for interest rates to go in the near future but up. Furthermore I speculate that this is the beginning of a trend because I am optimistic about Trump economic policies, and a more healthy economy will probably inspire the Fed to kick in more prime rate increases over the next 4 years.
I'm still seeing plenty of 30 year fixed rate 20% down advertising in the area of 4%.
yep.
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I'd bet if buyer wanted out they would use one of those loopholes that my agent is saying doesn't really matter.
