Your Rate

[Anonymous]

What rate did you lock in with today or this week?

Share your interest rate, term, credit score and if you bought points.

6.99, 30y, 840, yes 😖1

[Anonymous]

I don’t get why people are so stressed about this, interest rates will probably go down at some point and you can refinance.

[Anonymous]

Anonymous wrote:I don’t get why people are so stressed about this, interest rates will probably go down at some point and you can refinance.

Because banking on interest rates going down by taking on a mortgage that you cannot afford today would be financially irresponsible, so the rates today severely limit the housing options of most people.

[Anonymous]

I work at a bank. The 5/5 is our only big on.

Hardly anyone is getting 30 year mortgages.

The five/five is a fixed rate for five then adjusts every five year.

The 7/6 is not as popular as although fixed for 7 it adjusts every six months afterwards.

People are using credit unions in the 5/5 as some decent rates

[Anonymous]

Interest rates matter. Someone from my work is building a house she can no longer afford to close on bc rates are so high. It’s devastating.
We are in the 2s and she will have to be closer to 7. It’s horrendous. Good luck out there!!

[Anonymous]

No rate cuts in 2024, rather, rates floating above 8%. Prices will continue to climb. Stagflation has returned!

[Anonymous]

Higher rates make houses more affordable if it causes home prices increases to stall.

[Anonymous]

Anonymous wrote:Higher rates make houses more affordable if it causes home prices increases to stall.

You keep saying this but it’s just not happening.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I don’t get why people are so stressed about this, interest rates will probably go down at some point and you can refinance.

Because banking on interest rates going down by taking on a mortgage that you cannot afford today would be financially irresponsible, so the rates today severely limit the housing options of most people.

Exactly, sure you can hope that rates go down and take a mortgage that you can barely afford, but if barely afford means living almost paycheck to paycheck, saving little toward emergency fund and therefore any emergency could screw you over then it's a bad idea.

[Anonymous]

I have a friend who bought in like mid/late 2020 but for got know what reason, decided to get adjustable rate mortgage. Probably the dumbest move one could have made, rather than locking in a low rate for 30 years, lock it in for 5. Not sure why he did that...

[Anonymous]

Anonymous wrote:Higher rates make houses more affordable if it causes home prices increases to stall.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I don’t get why people are so stressed about this, interest rates will probably go down at some point and you can refinance.

Because banking on interest rates going down by taking on a mortgage that you cannot afford today would be financially irresponsible, so the rates today severely limit the housing options of most people.

Exactly, sure you can hope that rates go down and take a mortgage that you can barely afford, but if barely afford means living almost paycheck to paycheck, saving little toward emergency fund and therefore any emergency could screw you over then it's a bad idea.

We stretched far further than I ever would have imagined for our current home which would have been a breeze to afford 3 years ago. I'd been projecting our future budget and what we could afford for years, but in the end rates made us pay a PITI that I would have vehemently said "no way" to a few years ago. The only comfort was that the major systems seemed solid with a very recent roof, etc. and solid inspection report and we already have a set emergency fund as a just in case backup.

[Anonymous]

Anonymous wrote:Higher rates make houses more affordable if it causes home prices increases to stall.

The median U.S. home-sale price hit a record $383,725 during the four weeks ending April 21, up 5.2% from a year earlier–one of the biggest jumps since October 2022. The average weekly mortgage rate hit 7.1% this week, its highest level since November 2023, as it became clear the Fed would keep interest rates high longer than expected. High prices and mortgage rates drove the median monthly housing payment to a record $2,843, up 13% year over year.

Prices are soaring despite the fact that there’s more inventory than last year. New listings are up 10.2% year over year, though growth in listings may be losing momentum as stubbornly high rates solidify the lock-in effect. Prices are being buoyed by the fact that inventory remains low despite the recent improvement.
https://www.redfin.com/news/housing-market-update-home-prices-costs-record-high/?utm_source=Iterable&utm_medium=email&utm_campaign=1038424&lctg=

[Anonymous]

Anonymous wrote:I don’t get why people are so stressed about this, interest rates will probably go down at some point and you can refinance.

I'm sure they will. But when? Six months ago you could persuade me it'd be fairy soon, within a year or so. But now I'm more persuaded interest rates are still going to climb and will remain elevated (above 7%) for the next 4-5 years at a minimum. They're not going back down to sub 3% possibly in our lifetime.

It's housing prices that matter more than interest rates. We're in a weird situation where prices are still climbing despite rates going up. That can't continue forever. Something will have to give and it will probably be housing prices but I expect a plateau rather than decline, allowing incomes to catch up.

[Anonymous]

4.625% back in 2022. I know it’s not exactly low but I’ll carry this rate for a decade probably. Counting my blessings, especially considering friends that are on the market now. Also, rates were at high 3s when I started looking 4 months before I put the offer and set the rate