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Sure, it's worth $5000, which is probably what I would lose (including my earnest money) if I walk.
I see a difference, personally. I have no debt, so I would not be walking away from debt. I would be making a decision before consummation.
So are or were you a seller, or are you a renter?
I am guessing you were not recently on the sell side. How would you feel if you finally got a buyer for your property under contract and then they walked because rates went up?
It is understood that rates are still historically low. That's is not the point. If one made an offer and suddenly rates shoot up, I think they have their right to re-evaluate their situation and pull out if that is adverse to them. I wish I can make a seller happy but I put my family's priority first. Like I said, if rates get to 6% I will lower my offer on the short sale I offered. If they don't like it, I am sorry. Like Chet said above stability is key here and I am not sure anyone know where they are going to stablize, 6, 7%? who knows.
It is understood that rates are still historically low. That's is not the point. If one made an offer and suddenly rates shoot up, I think they have their right to re-evaluate their situation and pull out if that is adverse to them. I wish I can make a seller happy but I put my family's priority first. Like I said, if rates get to 6% I will lower my offer on the short sale I offered. If they don't like it, I am sorry. Like Chet said above stability is key here and I am not sure anyone know where they are going to stablize, 6, 7%? who knows.
I am not talking about 'making an offer', I am talking about having an 'accepted offer'. You can of coarse put it in your financing addendum. I, however, often see "market" filled in there.
So are or were you a seller, or are you a renter?
I am guessing you were not recently on the sell side. How would you feel if you finally got a buyer for your property under contract and then they walked because rates went up?
Renter. First time potential buyer. Would feel crappy, but would understand it's JUST BUSINESS. It's numbers. Would feel not so bad that I got $5000.
well, is there a difference if you walk now or later. it doesn't sound like there is. Why don't you just hang tight and see what the next few months bring. it might stay in the fives and then you'll have gotten your knickers in a knot over nothing. iirc the dip down into the fours was brief. it's been in the fives for awhile. I see it as just a temporary glitch that it bounced low and back up to where it was.
Renter. First time potential buyer. Would feel crappy, but would understand it's JUST BUSINESS. It's numbers. Would feel not so bad that I got $5000.
As a seller you probably would not have received $5k in earnest money. However, you also would probably not have a clause where the buyer can just walk. What you might have is a lawsuit against the walking buyers for breech of contract.
well, is there a difference if you walk now or later. it doesn't sound like there is. Why don't you just hang tight and see what the next few months bring. it might stay in the fives and then you'll have gotten your knickers in a knot over nothing. iirc the dip down into the fours was brief. it's been in the fives for awhile. I see it as just a temporary glitch that it bounced low and back up to where it was.
So true, and as I mentioned the OP can lock right now if desired. Either he mis-understood the lenders or??? All lenders can lock for longer than 30 days.
Rising interest rates is a sign of economic recovery. The feds may raise rates at the next meeting, but I think it will already be built in and not cause mortgage rates to go up again.
Rising interest rates is a sign of economic recovery. The feds may raise rates at the next meeting, but I think it will already be built in and not cause mortgage rates to go up again.
Not necessarily. I am pretty sure the recent rate increase is more due to skepticism than economic recovery.
I have seen nothing that would indicate that the FED would increase rates at the next meeting. I beleive the FED would prefer the mortgage rates stay down to keep real estate moving, however they don't have total control over mortgage rates.
I am in a similar situation. We decided to purchase a home back in February/March of this year, rates were around 4.8....as we moved forward with the process, rates continued to go down for a while, great for us. Now the rates are back around 5.6 and we are still 60 days or so out from a close. Our lenders said we could not lock in until we were 30 days from close, and we talked to mulitple lenders during our pre-approval process which the builder required. Now if rates continue on this path, we are looking at an increase in $200/mo or more from our previous position assuming rates don't spike. Also, we have already invested $12k into the home for upgrades, deposits, etc...so I feel we are pretty much trapped in the market that is upon us...and I for one, hope the rates level out. A .7 increase in less than 3 weeks when I am less than 3 weeks from my 30 day notice is just annoying, so theoretically I could be looking at a 6.3 rate by the time I can lock in, up from the 4.8 I got my pre-approval at...that is a huge increase and it drives me crazy to sit here with my hands tied and watch my budget get worse and worse daily...at what point do you just pull the plug, take your lump and not risk your future prosperity over a bad investment. I know $12k is alot to lose, but banktruptcy is worse...not that I can't afford the price difference, but it definately makes me think alot about the "what ifs" with the current unemployment rates, mortgage rates, etc...I bought because rates were low, and America was trying to rebuild itself, and needed to see consumer confidence and spending, and I was in a position to spend more, buy a home, etc...and was happy to do so during a time of historically low rates. I am still ok with it now at 5.5-5.6...but at some point, I will not be ok with it, and I will write my $12k off as a tax liability and move on with my own life.
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