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Downwards? Seriously? Not in most markets! It's a supply and demand thing in many Texas markets. Prices will remain steady or increase and the rates going up will just get people off the fence who were still waiting this past year.
Downwards? Seriously? Not in most markets! It's a supply and demand thing in many Texas markets. Prices will remain steady or increase and the rates going up will just get people off the fence who were still waiting this past year.
It sounds like you are either a home seller or in the real estate industry. OICUR.
On a $250,000 home the difference in monthly P&I between 3.97% and 4.32% is $50, I doubt this would have any impact on prices. Articles on the subject may push some buyers that are on the fence to make the move but I doubt that number would be significant either.
Downwards? Seriously? Not in most markets! It's a supply and demand thing in many Texas markets. Prices will remain steady or increase and the rates going up will just get people off the fence who were still waiting this past year.
The market is tight, yes, but interest rates will really put the hurt on alot of buyers. I would expect the market to get much much slower, especially in $500,000+ homes if the rates go up above 6%.
Much of the buying now is b/c of the low rates, combined with the lack of houses, its created a frenzy, that in the past two weeks I have seen just now start to cool off...homes that a month ago would not last hours are now lasting 10-12 days...thats still very fast, and prices are still good, but its cooling off, and if rates climb it is going to slow down, even in the incredible Texas markets.
The market is tight, yes, but interest rates will really put the hurt on alot of buyers. I would expect the market to get much much slower, especially in $500,000+ homes if the rates go up above 6%.
Much of the buying now is b/c of the low rates, combined with the lack of houses, its created a frenzy, that in the past two weeks I have seen just now start to cool off...homes that a month ago would not last hours are now lasting 10-12 days...thats still very fast, and prices are still good, but its cooling off, and if rates climb it is going to slow down, even in the incredible Texas markets.
Rates have been so low the past 2-3-4 years.
What do people expect?
It can't remain low forever.
The USA has to start raising rates.
All about perspective. What were the rates in the 1980s? 1990s?
All about perspective. What were the rates in the 1980s? 1990s?
Right. And peoples' need for shelter will not go away.
Look for renewed 3-2-1 buydowns from builders and aggressive sellers.
My first mortgage was at 12.09%. We were absolutely delighted. Market rate was about 13.75% at that point.
I was $300 annual income under the state guidelines maximum, and someone else's deal fell apart, and we got called for the last HFA loan at that rate.
My brother took on a 19% variable ARM a while later. Best move he ever made, as rates fell off a cliff shortly thereafter.
my colleague just got his rate locked on 5.3% today... We closed on the house last week with 3.750% ... Big jump
There are quite a few variables that would need to be disclosed to ensure that this is an "apples to apples" comparison. Down payment, credit score, loan term, if refi is it cashout or rate/term, FHA vs. Conventional, etc.
For instance, a $300,000 FHA Loan at 3.25% now carries a Full Term Mortgage Insurance payment that likens the total payment equivalent to about a 6% rate. Meanwhile a Conventional $300k loan at 80% of the home's value at 4.25% yields a much lower overall payment than the FHA loan with the "better rate."
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