30 year fixed mortgage rate jumped from 3.97% to 4.32% in the last week

[oregonwoodsmoke]

Originally Posted by farmermac

I feel crazy stupid lucky to have bought when I did. 3.25% in early April.

Is the general consensus that rates are not going back down? I was hoping they would in the fall when home buying activity dies down

Interest rates are not based upon whether or not houses are selling. They are tied to the federal government's prime rate. Because inflation is happening (in spite of what the government is trying to tell you), the Fed is going to have to raise interest rates to try to slow down inflation. Or stop printing money, and I don't predict that happening.

Seriously, it is a very good time to make sure the credit cards have a zero balance because those rates are tied to the prime rate also, and when the prime rate goes up, your credit card interest rate is going up, too. That will cause a big increase in your minimum payment.

[ACWhite]

Long term interest rates are more closely tied to bond prices than to the Fed's short term rates.

[dontaskwhy]

The banks get rich no matter what percentage they lend money at.

[JoeJ2013]

We got a bit lucky/ timed it just right. Closed in April 3.25% that a 2% swing in just a couple of months. Glad our home came along when it did!

[sholomar]

I won't be buying a home unless I can afford to pay for it with a 15 year loan due to these recent rise in rates... not gonna pay an extra $100 a month for life .. I fully expect the economy to contract when they stop quantitative easing anyways so rates will just go back down. If they won't, I'm pretty well off renting and save a bundle over owning since I don't need the extra square footage. Plus home prices in my particular town are 25k higher than surrounding towns in the price range I'm looking at.