Have mortgage rates reached the final bottom? (fees, banks, rental)

[SGMI]

Looks like we're getting a "second wind" of low rates, after the big dip around Jan-Feb.

I finally got off the fence, and put an app in to get 2.875% on my largest rental mortgage. And I could have done better, but preferred to roll the closing costs in with a higher rate.

In a logical world, no sane investor would want to take 2%-3% returns for 15 to 30 years. Inflation is clearly returning. I keep wondering when the bond market will wake up and stop offering these gifts to debtors.

[rational1]

It's a good thing those people buying the bonds don't read the newspapers.

[mathjak107]

We had all those here proclaiming the death of bonds 6 months ago ..

Well once again few predicted right ..bonds blew away cash instruments in total return as rates reversed direction and fell

[davebarnes]

"Have mortgage rates reached the final bottom?"
It does not matter.
The practical difference of 2.5% vs 2.8% is meaningless.
$75/month on a $500K mortgage

[Jkgourmet]

Originally Posted by davebarnes

"Have mortgage rates reached the final bottom?"
It does not matter.
The practical difference of 2.5% vs 2.8% is meaningless.
$75/month on a $500K mortgage

Dave, I agree with your basic premise. In fact, we are in the middle of a refi for 2.65% on a 20 year. We could have gotten 2.5% for roughly the same costs (minimal), but I decided to take the marginally higher rate simply because it was with our current lender - just a super easy transaction.


That said, $75 bucks a month isn't "meaningless" to a lot of people. For good reasons and bad reasons - even if they have a $500K mortgage.

[masssachoicetts]

Originally Posted by davebarnes

"Have mortgage rates reached the final bottom?"
It does not matter.
The practical difference of 2.5% vs 2.8% is meaningless.
$75/month on a $500K mortgage

Thats a pretty significant chunk of money.. just from a small difference in interest rates alone.

$75 a month is $900 a year. That can fund a Roth IRA, and after 30 years give you quite a bit of returns.

[NORTY FLATZ]

Quoted today from one of my banks:

2.25% 15 year, no points/fees...

[sacredgrooves]

I just closed a refi Thursday, 2.5 for a 30 year, no points. I am never leaving this house lol.

[oregonwoodsmoke]

They can't go much lower. Although if they hit negative interest rates, I might buy a couple more houses.

[dontaskwhy]

Originally Posted by oregonwoodsmoke

They can't go much lower. Although if they hit negative interest rates, I might buy a couple more houses.

Don't hold your breath on that one happening, EVER.