got quoted for 4.625 percent 30 year fixed loan today (high conforming LTV of 85)

[Anonymous]

I saw an article today saying that the percentage of new loans that are ARMs is increasing. Here we go again. I do not want housing to crash but warning signs are all over the place.

[Anonymous]

Anonymous wrote:As a realtor, I think we will see a bit more inventory as rates go up, as people who do need to move will be anxious to do so before the rate environment makes Buyers uncomfortable. More inventory will help stabilize prices a bit.

This is why we are considering moving this year and not next year.

[Anonymous]

Anonymous wrote:I saw an article today saying that the percentage of new loans that are ARMs is increasing. Here we go again. I do not want housing to crash but warning signs are all over the place.

You do realize the housing crash wasnt because of arms

[Anonymous]

I had to pay 2.25 points to get my rate on a second home down to 4.6%. Sucks. It's a much smaller amount than yours, so doesn't hurt as much.

[Anonymous]

Anonymous wrote:

Anonymous wrote:You're not priced out. You just need to purchase a slightly cheaper house.

+1

Or stop being a loser and borrow more

[Anonymous]

Anonymous wrote:I had to pay 2.25 points to get my rate on a second home down to 4.6%. Sucks. It's a much smaller amount than yours, so doesn't hurt as much.

Let me pull out my tiny violin for your costs on a second home.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I had to pay 2.25 points to get my rate on a second home down to 4.6%. Sucks. It's a much smaller amount than yours, so doesn't hurt as much.

Let me pull out my tiny violin for your costs on a second home.

It's a tiny cabin in the woods - not like some fancy beach house!

[Anonymous]

Anonymous wrote:

Anonymous wrote:I saw an article today saying that the percentage of new loans that are ARMs is increasing. Here we go again. I do not want housing to crash but warning signs are all over the place.

You do realize the housing crash wasnt because of arms

Increasing use of ARMs is the first sign. It means people are over-leveraging. Then all of a sudden huge populations are underwater and screwed.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I saw an article today saying that the percentage of new loans that are ARMs is increasing. Here we go again. I do not want housing to crash but warning signs are all over the place.

You do realize the housing crash wasnt because of arms

Increasing use of ARMs is the first sign. It means people are over-leveraging. Then all of a sudden huge populations are underwater and screwed.

lol it's kind of remarkable how we (collectively) never learn

[Anonymous]

ARMS are different than they were before.
There are now caps on how much the interest rate could increase. Back in 2008, payments could just flow up like you wouldn’t believe.
And that was only one factor in the whole thing.
I’m pretty risk averse, but I can see doing a 10 year ARM. Pretty likely you’d be able to refi to lower fixed rate within 10 years. 3 years or less, maybe not.

Agree with PPs, OP is not priced out, just needs to look at slightly cheaper homes. The buyers who were in the budget Band just higher than OPs are also looking at slightly cheaper homes and will probably buy what OP was looking at initially. Maybe fewer bidding wars, but there is so much more demand than supply, and renting is no walk in the park either. Unless there is suddenly a big reversal in supply and demand, prices aren’t likely to fluctuate a lot.

[Anonymous]

Reducing one's purchase price will now leave the "middle class" priced out in a way? Those in the million dollar range will now reduce their budgets to lets say 850k, those with 850k budget may reduce their budgets to 600k and so forth and so on.

[Anonymous]

Anonymous wrote:Reducing one's purchase price will now leave the "middle class" priced out in a way? Those in the million dollar range will now reduce their budgets to lets say 850k, those with 850k budget may reduce their budgets to 600k and so forth and so on.

This. That market has also gone from a home that was easily 700K last year, pushing 850K this year and going 50K+ over asking. That's a huge $$ swing in what could be considered in budget. Add increased interest rates and most "middle class" are absolutely priced out of the market now. We bought small house a number of years ago just to get into the single family market with the intention of getting into a bigger house in a few years. A few years later and what we would be interested in, is now out of reach so here we sit.

[Anonymous]

It's still lower than our original mortgage rate!

[Anonymous]

Anonymous wrote:Reducing one's purchase price will now leave the "middle class" priced out in a way? Those in the million dollar range will now reduce their budgets to lets say 850k, those with 850k budget may reduce their budgets to 600k and so forth and so on.

Exactly. Being priced out of the million dollar home market is ... normal.

[Anonymous]

Anonymous wrote:

Anonymous wrote:You’re not the only one OP and prices should start to reflect this.

Prices don’t have anything to do with rates

Sure it does. Supply and demand my friend. Rates go up, number of available buyers go down.