Your Rate

[Anonymous]

Anonymous wrote: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

what kind of rates?

[Anonymous]

With rates at 7%, consider cashing out stock if it’s in a non-retirement account and not full of capital gains. Getting 7% guaranteed is a great return. If rates do fall, you can always take a mortgage and invest the proceeds back into the market.

[Anonymous]

Anonymous wrote:With rates at 7%, consider cashing out stock if it’s in a non-retirement account and not full of capital gains. Getting 7% guaranteed is a great return. If rates do fall, you can always take a mortgage and invest the proceeds back into the market.

Wait what? Explain pls. Where do I get 7 percent guaranteed??

[Anonymous]

Seriously do you all think rates will go down? What about by July? What would people get if they locked in tomorrow?

[Anonymous]

Anonymous wrote:Seriously do you all think rates will go down? What about by July? What would people get if they locked in tomorrow?

Jay Powell isn't on DCUM.

[Anonymous]

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

It never left.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Seriously do you all think rates will go down? What about by July? What would people get if they locked in tomorrow?

Jay Powell isn't on DCUM.

He's in Biden's pocket, rates will come down.

[Anonymous]

Predict rates above 10% before it drops. You heard it here. Inflation is not tackled by any stretch of the imagination.

[Anonymous]

Anonymous wrote: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!!

Didn't they lock the rate when the contract was ratified?

[Anonymous]

Anonymous wrote:

Anonymous wrote: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!!

Didn't they lock the rate when the contract was ratified?

If building a house, would be a multi -stage/loan process, probably. First, buy the land with a construction loan, with extra proceeds to pay for construction. Then once construction is complete, take out a traditional mortgage that will pay off the construction loan. They won't make a traditional mortgage loan until the house is complete- need certificate of occupancy, appraisal within 90 days of loan closing, etc. So no real way to lock in a future loan rate for 12-24 months down the road.

[Anonymous]

Anonymous wrote:Predict rates above 10% before it drops. You heard it here. Inflation is not tackled by any stretch of the imagination.

+1. Look at the news, folks -- inflation is still crazy, and we went from people predicting six rate cuts this year to people saying maybe we'll see a rate cut in March 2025. Just to repeat, from six to zero this year. Two years from now, people will probably be bragging about their 7% rates when we've gotten above 10%.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Predict rates above 10% before it drops. You heard it here. Inflation is not tackled by any stretch of the imagination.

+1. Look at the news, folks -- inflation is still crazy, and we went from people predicting six rate cuts this year to people saying maybe we'll see a rate cut in March 2025. Just to repeat, from six to zero this year. Two years from now, people will probably be bragging about their 7% rates when we've gotten above 10%.

Wow is that really where it’s headed, 10%? Im
learning as we speak. We are getting hit harder here in NOVA bc housing market prices are still rising along with the interest rates. Other parts of the country are complaining about their 7% on their Uber expensive 380k homes. I wish that were our problems here!

[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.

+1. Also refinancing is Expensive!

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Predict rates above 10% before it drops. You heard it here. Inflation is not tackled by any stretch of the imagination.

+1. Look at the news, folks -- inflation is still crazy, and we went from people predicting six rate cuts this year to people saying maybe we'll see a rate cut in March 2025. Just to repeat, from six to zero this year. Two years from now, people will probably be bragging about their 7% rates when we've gotten above 10%.

Wow is that really where it’s headed, 10%? Im
learning as we speak. We are getting hit harder here in NOVA bc housing market prices are still rising along with the interest rates. Other parts of the country are complaining about their 7% on their Uber expensive 380k homes. I wish that were our problems here!

It's impossible to predict these things accurately but I highly doubt they will go up to 10%. I am willing to bet that we hit max already (this month and also a few months ago). That being said, I also don't think they will fall as far and as fast as people were predicting a few months ago. Inflation is stubborn (Fed really f'ed this one up, should have increased rates sooner and government should have pumped way less $$ into economy) and does not seem to be abating.

As for the 380k, the price is irrelevant, frankly, what is more relevant is price/income (or monthly payment/income). I am sure those in areas where houses are 380k are facing the same or even worse problems as people in DMV

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Predict rates above 10% before it drops. You heard it here. Inflation is not tackled by any stretch of the imagination.

+1. Look at the news, folks -- inflation is still crazy, and we went from people predicting six rate cuts this year to people saying maybe we'll see a rate cut in March 2025. Just to repeat, from six to zero this year. Two years from now, people will probably be bragging about their 7% rates when we've gotten above 10%.

Wow is that really where it’s headed, 10%? Im
learning as we speak. We are getting hit harder here in NOVA bc housing market prices are still rising along with the interest rates. Other parts of the country are complaining about their 7% on their Uber expensive 380k homes. I wish that were our problems here!

Only in the deepest rural areas and small towns would 380k be considered uber expensive for a house. Even in normal midsize cities $1M is pretty common for an UMC house with good schools.