How low are mortgage rates going to go?

[Anonymous]

I have 2.5, and I hope they never go that low again!

[Anonymous]

Anonymous wrote:I have 2.5, and I hope they never go that low again!

Why exactly would you hope that?

[Anonymous]

Why does my arm keep creeping up?

[Anonymous]

Anonymous wrote:Why does my arm keep creeping up?

Inverted yield curve. Short term rates are higher than long term rates. Mortgage rates track the 10 year treasury. Shorter term treasuries usually have lower rates because it’s less risky than longer term ones. Longer term rates being lower indicates recession fear because there is worry that the long term is going to be worse than the short term.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Looks like mortgage rates are falling again. I’ve got a jumbo loan at 4.25%, would love to refinance but feel like it’s only worthwhile if I can get a rate at least 3.25%. Is this a pipe dream? Anybody think rates will go that low?

We stopped our re-mortgage as Alexandria City recently ruled a re-mortgage tax! If they had not (and we are high tax payers and more to Alexandria City) we would have pursued this. $10,000 to Alexandria City was the deal.

What are you referring to? We refinanced last year and didn't pay anything like this. Can you share your source?

[Anonymous]

So, one more time for dummies: we are looking to buy a house with a 30 year fixed rate this spring. Since the rates are not going up this year, we should not be locking a rate now, but should lock the rate at the last possible moment since the rates are projected to be lowest in June and then start to creep up again? Is that more or less reasonable? Thank you!

[Anonymous]

Anonymous wrote:

Anonymous wrote:Why does my arm keep creeping up?

Inverted yield curve. Short term rates are higher than long term rates. Mortgage rates track the 10 year treasury. Shorter term treasuries usually have lower rates because it’s less risky than longer term ones. Longer term rates being lower indicates recession fear because there is worry that the long term is going to be worse than the short term.

God I love the smarties of DCUM. Some days I want to hug the whole site when it is behaving.

[Anonymous]

Anonymous wrote:So, one more time for dummies: we are looking to buy a house with a 30 year fixed rate this spring. Since the rates are not going up this year, we should not be locking a rate now, but should lock the rate at the last possible moment since the rates are projected to be lowest in June and then start to creep up again? Is that more or less reasonable? Thank you!

The yield curve has predicted all the recessions but that doesn’t mean it always will, particularly when everyone is pointing at it and screaming “recession”. If we have one soon, it’s going to be the most forecast and predicted recession in history.

In other words, we don’t know that rates won’t drop.

[Anonymous]

Anonymous wrote:So, one more time for dummies: we are looking to buy a house with a 30 year fixed rate this spring. Since the rates are not going up this year, we should not be locking a rate now, but should lock the rate at the last possible moment since the rates are projected to be lowest in June and then start to creep up again? Is that more or less reasonable? Thank you!

when you are shopping for a lender look for one that has a float-down option. We used George Mason Mortgage and they had an option for us to lock for 45 (or 60) days, with a free float-down up to .5% if rates fell between our lock and when we closed.

[Anonymous]

Anonymous wrote:

Anonymous wrote:So, one more time for dummies: we are looking to buy a house with a 30 year fixed rate this spring. Since the rates are not going up this year, we should not be locking a rate now, but should lock the rate at the last possible moment since the rates are projected to be lowest in June and then start to creep up again? Is that more or less reasonable? Thank you!

when you are shopping for a lender look for one that has a float-down option. We used George Mason Mortgage and they had an option for us to lock for 45 (or 60) days, with a free float-down up to .5% if rates fell between our lock and when we closed.

Good tip - thanks!

[Anonymous]

Anonymous wrote:

Anonymous wrote:So, one more time for dummies: we are looking to buy a house with a 30 year fixed rate this spring. Since the rates are not going up this year, we should not be locking a rate now, but should lock the rate at the last possible moment since the rates are projected to be lowest in June and then start to creep up again? Is that more or less reasonable? Thank you!

The yield curve has predicted all the recessions but that doesn’t mean it always will, particularly when everyone is pointing at it and screaming “recession”. If we have one soon, it’s going to be the most forecast and predicted recession in history.

In other words, we don’t know that rates won’t drop.

Got it - thanks!

[Anonymous]

Anonymous wrote:

Anonymous wrote:For you folks that got 3.25 fixed 30 year in 2016, what was your mortgage amount?

More importantly, how many points were they paying?

The yield curve has inverted which means we could have a recession in the next 6 months to a couple of years from now. The inverted yield curve is probably also driving down rates since they move in relation to 10 year treasuries.

In early 2017, we got an $820,000 30-year fixed from Citi at 3.25%, no points.

[Anonymous]

What are the 30-year rates now?

[Anonymous]

Anonymous wrote:What are the 30-year rates now?

Lender and credit score-specific, but we are hoping to get one just above 4% - or may be just below 4% a month from now...

[Anonymous]

Anonymous wrote:

Anonymous wrote:What are the 30-year rates now?

Lender and credit score-specific, but we are hoping to get one just above 4% - or may be just below 4% a month from now...

We just got one for 4% (and rates dropped the next day, of course...).