Mortgage Rates (as of June 2008) (San Antonio, Live Oak: sales, real estate, apartment)

[guyd78]

What are some of your thoughts in regards to current and future mortgage rates here in San Antonio?

My wife and I are looking at possibly buying a house somewhere in the Live Oak area on a 15 year fixed rate loan in the next few months, and have noticed that rates have gone up a little in the past few weeks. We are starting to talk to lenders, and possibly a realtor, but I wanted to get some other "neutral" opinions. We were originally going to stay in our apartment for another year or so, but we don't expect housing prices to drop any time soon - stay the same maybe, but not drop.

Thanks!

[kevcrawford]

As a Realtor, I see rates starting to climb just slightly. Not too much and I don't see them skyrocketing, but I can't see how they'll get lower than they have been over the last year or so. House prices certainly aren't dropping at the moment. The overall sales are down just a bit, but that's because the banks aren't approving anyone and everyone for a loan anymore, which they shouldn't have done in the first place. There are just less qualified buyers out there. Prices aren't coming down though. Some areas are rising slightly and some are holding steady.

[Rebelsbabe]

yikes really?

[scraejtp]

Just got a 5.125% rate today for a 15 year fixed. Still relatively low, but obviously not near when the rates hit their bottom.
I don't see them going back down enough to make a large difference. Sure it may dip some, but I think the long term trend is probably up.

[hello13685]

Guyd78, If you don't think housing prices will rise, then I hope you are not planning on paying more per month than you would pay renting. What would be the point? Why would you pay more (including 6% mortgage interest) for a non-appreciating asset? Wait until prices begin to rise, and then jump in. As some people know, I am of the belief that houses aren't going to appreciate in any meaningful way for quite a while. In fact, I think San Antonio is in line to see declines. Year over year DECLINES have already been reported in SA, but real estate agents will not inform you of this. Real estate agents will ALWAYS tell you it's a good time to buy.

[sinsativ]

Im not an agent, but its a buyers market right now. Mortgage rates are low, and its a gamble if theyare going to go much lower. what kind of percentage saving could you get that would make it worth it to wait for that little bit on a 15 year note. look at the amount of the property make an honest offer for todays market, with good credit, rates at around 5 to 5.25% and a low price, buying equity and not losing in rent, its worth doing it now and not wasting it on paying that rent to some landlord. Every month you pay rent you lose equity, so what do you earn by waiting? How much do you think it will lower?

[hello13685]

That's the whole point. There IS NO EQUITY growth in a flat market, so that argument goes out the window. The costs of owning far exceed the costs of renting at this time. And rather than throwing money at a landlord, homedebtors are throwing that same amount of money into govt. coffers via taxes and insurance premiums. IF home values are not appreciating, you are better off taking the cheapest option. But if you want to pay more, go for it...

[CelesteDF]

Originally Posted by sinsativ

Im not an agent, but its a buyers market right now.

I don't think this is an entirely accurate statement in San Antonio. Certainly in some parts of town where you have large subdivisions of houses that are all relatively similar (making the houses more of a commodity), buyers may have more leverage. However, in other parts of town where there is higher demand and less supply, such as in some of the inner loop/historic neighborhoods, I'd have to say it's a little different picture.

I just bought a house in Tobin Hill and there were 4 other bids in 2 days on this house. What got me the house was that I ended up offering full asking price plus a couple hundred bucks (well, that and the pleading handwritten note about how much I loved the house). My agent told me that just this week he had a client lose a house in a nearby neighborhood in a situation with 3 other bids. As any realtor will tell you - it's all about location, location, location. Some areas of SA are very much a buyer's market right now, while in other areas buyers have very little leverage.

[JuneOf48]

I was in a similar situation to (and the same neighborhood as) CelesteDF. My house was a good fixer-upper in a lively area, and there were more than 10 offers in the first few days/week. I offered asking price and got it.

To Hello: I don't understand all of the economics, but I'll be paying less in mortgage/taxes/insurance than I did renting, and I'm in a bigger, better place. There are definitely some maintenance and upkeep costs (and stresses!) involved in owning, but that should ultimately add value, and renters are wrong to assume that their landlord doesn't pass on such costs to them in higher rents. (Unless you're in a dilapidated building with a slumlord in charge.)

With owning, the point is that you should ultimately get back your monthly payments when you sell the house, even if your house only keeps pace with the rate of inflation. From what I've seen, rarely do taxes, insurance, and mortgage interest amount to what a person would pay for a rental of the same size/quality as owned property. And, of course, your landlord figures those costs into your rent, and then adds more money for property value and profit. He or she, too, is paying off a mortgage and all the other ownership expenses, and making a good return on his/her investment at your expense!

As for me, I'm not looking to make a big profit if I sell my house in a few years. However, I think I'll get back the tens of thousands of dollars I would've paid in rent over that time. If you're at least reasonably intelligent about everything, you should be fine, and you might make a chunk of cash if you choose the right house and area.

[Chaka]

Originally Posted by CelesteDF

I don't think this is an entirely accurate statement in San Antonio. Certainly in some parts of town where you have large subdivisions of houses that are all relatively similar (making the houses more of a commodity), buyers may have more leverage. However, in other parts of town where there is higher demand and less supply, such as in some of the inner loop/historic neighborhoods, I'd have to say it's a little different picture.

I just bought a house in Tobin Hill and there were 4 other bids in 2 days on this house. What got me the house was that I ended up offering full asking price plus a couple hundred bucks (well, that and the pleading handwritten note about how much I loved the house). My agent told me that just this week he had a client lose a house in a nearby neighborhood in a situation with 3 other bids. As any realtor will tell you - it's all about location, location, location. Some areas of SA are very much a buyer's market right now, while in other areas buyers have very little leverage.

Ah, you're in the same sort of situation we found in Lavaca in 2004. We had to outbid a few others as well, all within a few days of the house going on the market.

Now it's a different story in the neighborhood though, but only for those houses being sold by flippers and asking too much. The fixer-uppers are still in hot demand and go VERY fast.