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Started By
Message
Why did mortgage rates increase today?
Posted on 10/9/08 at 1:26 pm
Posted on 10/9/08 at 1:26 pm
The Fed cut rates by 1/2% yesterday and the rates went up overnight. I have a contract on a house and almost locked in with Wells Fargo at 5.75/5.9 APR (30 yr fixed) yesterday.
Today it's up to 6.0/6.2 APR. I don't get it, shouldn't they have stayed steady at worst with a rate cut? I regret not locking in yesterday
Today it's up to 6.0/6.2 APR. I don't get it, shouldn't they have stayed steady at worst with a rate cut? I regret not locking in yesterday
5
Posted on 10/9/08 at 1:30 pm to FUBAR
You have no business owning a house if you still are in the mindset of fed funds rate cuts being somehow correlated to extending mortgage credit to individual borrowers in this environment.
Posted on 10/9/08 at 1:30 pm to FUBAR
Treasury hit the market with a bunch of unexpected supply yesterday and spiked long term rates.
Have fun, this is what $700B buys you.
Have fun, this is what $700B buys you.
Posted on 10/9/08 at 1:32 pm to FUBAR
mortgage rates have nothing to do with that rate.
Posted on 10/9/08 at 1:35 pm to Tiger JJ
quote:
You have no business owning a house if you still are in the mindset of fed funds rate cuts being somehow correlated to extending mortgage credit to individual borrowers in this environment.
Getting credit approval is not an issue for me and I'm putting 20% down, no PMI. I'm talking about rates, not getting borrower approval. Thanks for attempting to insult me rather than offering input.
Posted on 10/9/08 at 1:38 pm to FUBAR
BTW, they're going to go up again today.
Posted on 10/9/08 at 1:40 pm to FUBAR
quote:
Thanks for attempting to insult me rather than offering input.
He did offer input and was actually trying to help, he just very strongly feels that owning a home is very bad investment at this time. What he said put in a little nicer way is if you don't realize the actual relationship of the fed funds rate to home mortgages, then you need to do more research on the economics of home ownership before you can make an informed decision on whether buying a home is a worthwhile use of your money at this time.
Posted on 10/9/08 at 1:42 pm to prplhze2000
quote:
mortgage rates have nothing to do with that rate.
Normally I would agree with you and I understand the association with mortgage rates and bond rates but I watched Secretary Paulson's speech yesterday and he specifically said that the action he was taking would lower mortgage rates. I guess I didn't expect an immediate increase after that announcement. I have time, my closing date is still 7 weeks away.
Posted on 10/9/08 at 1:46 pm to Tiger JJ
quote:
You have no business owning a house if you still are in the mindset of fed funds rate cuts being somehow correlated to extending mortgage credit to individual borrowers in this environment.
you say the things i want to say but am too "nice"
Posted on 10/9/08 at 1:47 pm to FUBAR
quote:
I have time, my closing date is still 7 weeks away.
Have you looked at Bank of America? I got a really good no fee loan through them and I think they are still running the same deal. It was far and away the best financing deal when I was shopping around, and I got quotes from Wells Fargo too.
Posted on 10/9/08 at 1:48 pm to FUBAR
quote:
Getting credit approval is not an issue for me and I'm putting 20% down, no PMI. I'm talking about rates, not getting borrower approval. Thanks for attempting to insult me rather than offering input.
It's not an insult. I think you should step back and look at the big picture. If you are worried about some theoretical disconnect in the price of funds for your leveraged transaction, then perhaps you should rethink the entire transaction.
Posted on 10/9/08 at 1:50 pm to TigerinATL
quote:
Have you looked at Bank of America? I got a really good no fee loan through them and I think they are still running the same deal. It was far and away the best financing deal when I was shopping around, and I got quotes from Wells Fargo too.
That's one of the few I haven't looked into. Thanks! I check into Bank of America.
Posted on 10/9/08 at 1:50 pm to FUBAR
quote:
I watched Secretary Paulson's speech yesterday and he specifically said that the action he was taking would lower mortgage rates.
Secretary Paulson is full of shite. Whatever he says, the opposite is probably true.
Posted on 10/9/08 at 1:52 pm to McLemore
i gave my brother a long lecture yesterday on buying (not) a home. he is a self-employed carpenter and his wife runs a winery. they don't make much and live in an area where housing is very fungible. Plus, the self-employed thing makes it difficult to properly document income.
anyway, they were pre-approved several months ago and put an offer on a house. it fell through. that same house is on the market for 70% of their offer price!
my brother was tempted to start looking again, but when he told me what he could rent a nice house for up there (minn/wisc), i said no way should he even think about buying.
there's a temptation to feel as though you are "giving your money away" when you rent. he grasps fully though that he'd be giving away a lot more money in interest, taxes, maintenance, and depreciation if he were to get into a house right now. Also, he said it's academic as he probably couldn't even get a loan now.
so he is moving into a rental at a $500/mo discount to his current rental and saving money. THAT is the American way. That is how you "own," something. Waiting for rates and mortgage packages to loosen up is not.
I'm with JT, I think most parts of the country are going to see things get a lot worse, housing-wise, before they get better. and when they do get better, it's going to be a long slow road to recovery.
Take your time. Chill. I wish I were in a position to do so.
anyway, they were pre-approved several months ago and put an offer on a house. it fell through. that same house is on the market for 70% of their offer price!
my brother was tempted to start looking again, but when he told me what he could rent a nice house for up there (minn/wisc), i said no way should he even think about buying.
there's a temptation to feel as though you are "giving your money away" when you rent. he grasps fully though that he'd be giving away a lot more money in interest, taxes, maintenance, and depreciation if he were to get into a house right now. Also, he said it's academic as he probably couldn't even get a loan now.
so he is moving into a rental at a $500/mo discount to his current rental and saving money. THAT is the American way. That is how you "own," something. Waiting for rates and mortgage packages to loosen up is not.
I'm with JT, I think most parts of the country are going to see things get a lot worse, housing-wise, before they get better. and when they do get better, it's going to be a long slow road to recovery.
Take your time. Chill. I wish I were in a position to do so.
Posted on 10/9/08 at 1:55 pm to McLemore
quote:
That is how you "own," something
Right. True "equity" has been built by the people who were renting through this madness.
Posted on 10/9/08 at 1:55 pm to Tiger JJ
quote:
It's not an insult. I think you should step back and look at the big picture. If you are worried about some theoretical disconnect in the price of funds for your leveraged transaction, then perhaps you should rethink the entire transaction.
I appreciate that but I am moving because of my career and rental property in the area is inadequate so I have to buy if I am going to make this move. The home is very reasonably priced, not in an inflated price market and I'll be living there for 5-6 years.
This post was edited on 10/9/08 at 2:04 pm
Posted on 10/9/08 at 2:24 pm to FUBAR
quote:
rental property in the area is inadequate
I'm willing to go out on a limb without even knowing the area and say that there is no chance that this is true.
quote:
The home is very reasonably priced, not in an inflated price market
Doesn't mean the price can't/won't go down.
quote:
I'll be living there for 5-6 years.
IF your current plans go, well, according to plan.
Posted on 10/9/08 at 2:28 pm to FUBAR
[link=(www.mortgagecommentary.com)]LINK[/link]
Posted on 10/9/08 at 2:31 pm to FUBAR
quote:
rental property in the area is inadequate
quote:
so I have to buy
You admit that there is rental property available, then the very next thing you say is you HAVE to buy..... No, you WANT to buy.
Posted on 10/9/08 at 2:33 pm to MikeBRLA
quote:
ou admit that there is rental property available, then the very next thing you say is you HAVE to buy..... No, you WANT to buy.
This is the mentality that continues to shock me with its persistence.
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