Mortgage interest rates - rise or fall this week?

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06/13/2018 22:42

Subject: Mortgage interest rates - rise or fall this week?

quote

Anonymous

Anonymous wrote:

Anonymous wrote:Hope you locked it in, OP. https://www.npr.org/2018/06/13/619212907/interest-rates-expected-to-go-up-with-more-hikes-to-come

NP. The fed funds rate is not highly correlated with mortgage rates. https://www.stlouisfed.org/on-the-economy/2017/october/increases-fed-funds-rate-impact-other-interest-rates

It's not, and the markets were expecting this increase, so it was baked in to a degree. But, it is still reasonable to assume that there will be a bit of an increase based on the Fed's move and, even more so, based on the announcement that two more increases are expected this year. That may be the bigger factor because there were some folks who were only expecting one and this news may have been less baked into existing rates.

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06/14/2018 05:29

Subject: Mortgage interest rates - rise or fall this week?

quote

Anonymous

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:curious on what people's thoughts are on paying for half a point or a point to lower the rate. worth it? i guess it just depends 1) if you have the cash 2) how long you plan to stay

We paid about 2 grand to go down to 3.875. I think that's totally worth it. Remember you're going to be stuck with that rate for awhile, I doubt rates will go back down to a normal level of 3.875 any time soon.

3.875 is near historic lows and nowhere near “normal.”

Interest rates were under 4% since November 2011, falling anywhere between 3.4% and 3.8%. So historically, yeah it's not normal, but it was average for the last 6 years.

Average for a short period of time is irrelevant when claiming a sub 4% mortgage rate is normal.

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06/14/2018 07:28

Subject: Mortgage interest rates - rise or fall this week?

quote

Anonymous

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:curious on what people's thoughts are on paying for half a point or a point to lower the rate. worth it? i guess it just depends 1) if you have the cash 2) how long you plan to stay

We paid about 2 grand to go down to 3.875. I think that's totally worth it. Remember you're going to be stuck with that rate for awhile, I doubt rates will go back down to a normal level of 3.875 any time soon.

3.875 is near historic lows and nowhere near “normal.”

Interest rates were under 4% since November 2011, falling anywhere between 3.4% and 3.8%. So historically, yeah it's not normal, but it was average for the last 6 years.

Average for a short period of time is irrelevant when claiming a sub 4% mortgage rate is normal.