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Started By
Message
Mortgage rates crossed back over 7%
Posted on 2/22/24 at 1:46 pm
Posted on 2/22/24 at 1:46 pm
Mortgage demand takes a massive hit as interest rates cross back over 7%
That article was from yesterday. They jumped again today
quote:
Mortgage interest rates surged last week to the highest level since early December, and that hit mortgage demand hard. Total application volume plunged 10.6% compared with the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($766,550 or less) increased to 7.06% from 6.87%, with points rising to 0.66 from 0.65 (including the origination fee) for loans with a 20% down payment.
“Mortgage rates moved back above 7 percent last week following news that inflation picked up in January, dimming hopes of a near term rate cut,” said Mike Fratantoni, the MBA’s chief economist, in a release.
Applications to refinance a home loan dropped 11% last week, compared with the previous week, and were just 0.1% higher than the same week a year ago. One year ago, the 30-year fixed rate was 6.62%. Refinance volume had been running above year-ago levels, even with rates higher this year, but the jump in rates last week clearly made a refinance not worth it for most borrowers.
Applications for a mortgage to purchase a home fell 10% for the week and were 13% lower than the same week one year ago. They sat at the lowest level since early November 2023.
“Potential homebuyers are quite sensitive to these rate changes, as affordability is strained with both higher rates and higher home values in this supply-constrained market,” Fratantoni added.
With rates higher, the adjustable-rate mortgage share of activity increased to 7.4% of total applications. ARMs offer lower interest rates but are considered more risky because they can adjust higher after a fixed period.
That article was from yesterday. They jumped again today
This post was edited on 2/22/24 at 1:49 pm
Posted on 2/22/24 at 1:51 pm to stout
I’m not looking forward to when the RE market completely locks up.
We haven’t had rates this high for 20+ years and the paper value of those properties is a LOT fricking higher than it was then.
We haven’t had rates this high for 20+ years and the paper value of those properties is a LOT fricking higher than it was then.
Posted on 2/22/24 at 1:54 pm to teke184
quote:
I’m not looking forward to when the RE market completely locks up.
I'm stocking up on cash in anticipation.
Stout, I kind of want to email you about a property I saw to get your thoughts. It is a project house and I think I'm missing something.
Posted on 2/22/24 at 1:55 pm to stout
When do yall think the stock market crashes?
Posted on 2/22/24 at 1:55 pm to SlowFlowPro
Do you have my real email or TD one?
Posted on 2/22/24 at 1:55 pm to teke184
Good thing Biden just forgave billions in student loans.
No way free money drives inflation higher.
Hard to believe they are this clueless. Just another example of Dems buying votes today at the expense of the entire economy down the road.
No way free money drives inflation higher.
Hard to believe they are this clueless. Just another example of Dems buying votes today at the expense of the entire economy down the road.
This post was edited on 2/22/24 at 1:57 pm
Posted on 2/22/24 at 1:56 pm to momentoftruth87
quote:
Thanks jobama
We may just be feeling the start of the Biden spending
Posted on 2/22/24 at 1:56 pm to LSUNWO1988
quote:
When do yall think the stock market crashes?
It is going to depend on what is considered a safer investment than the market.
Cause it ain’t going to be RE soon at this rate.
Posted on 2/22/24 at 1:56 pm to LSUNWO1988
When Trump gets in office they’ll crash it.
Posted on 2/22/24 at 1:56 pm to stout
I have your TD and the construction one
Posted on 2/22/24 at 1:57 pm to SlowFlowPro
Send to construction one
Posted on 2/22/24 at 2:00 pm to BobBoucher
quote:
Good thing Biden just forgave billions in student loans.
No way free money drives inflation higher.
Hard to believe they are this clueless. Just another example of Dems buying votes today at the expense of the entire economy down the road.
The fact that they keep trying for a "soft landing" while simultaneously printing money shows they are either clueless or are doing it on purpose.
IMO it's the latter because drawing this out hurts the middle class more vs letting it crash and reset so we can get to the recovery faster. Of course, boomers would be F'd in that scenario as their home value may not recover before they die or can use the equity to retire but as we are drawing this out it's just driving people more into debt.
This post was edited on 2/22/24 at 3:31 pm
Posted on 2/22/24 at 2:01 pm to stout
I keep hoping this plummets undeveloped rural land. I want to buy some more land. I've seen no evidence of it yet. The tracts aren't selling, but the prices haven't moved.
This post was edited on 2/22/24 at 2:03 pm
Posted on 2/22/24 at 2:02 pm to El Segundo Guy
Land is never going down, should’ve bought yesterday.
Posted on 2/22/24 at 2:03 pm to momentoftruth87
I've bought a lot already.
I'm looking for a few hundred acres for hunting and timber. Been mainly concentrating on Atoka, Pushmataha and Choctaw counties in Oklahoma.
I'm looking for a few hundred acres for hunting and timber. Been mainly concentrating on Atoka, Pushmataha and Choctaw counties in Oklahoma.
This post was edited on 2/22/24 at 2:09 pm
Posted on 2/22/24 at 2:05 pm to momentoftruth87
quote:
When Trump gets in office they’ll crash it.
Probably, it will go straight up into the election. The first time Trump was elected, it soared, so this time, the shorts will likely burn people
Posted on 2/22/24 at 2:07 pm to stout
quote:
When do yall think the stock market crashes?
I don't know about a "crash" but I think we hit a very definite recession not long after consumers hit the credit wall.
A lot of the GDP growth we've seen over the last year has been from consumers trying to offset inflation by putting the extra costs on their credit cards. They aren't the federal government, so there's a limit to how much they can charge. That limit is now being influenced by historically high interest rates (around 20%) so even just trying to service that debt is going to be a strain on many consumers.
I've been watching delinquencies for a while now, waiting for the Q4 numbers to post but I'm thinking they continue the steepening upward trend we've been seeing since Q3 2021.
There's no telling when that will happen as the credit card companies will do whatever they can to keep from having mass losses on their books, but all that excess cash in the economy is making inflation sticky and that stickiness is keeping rates up (and may raise them further).
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