Mortgage rates are set to stay elevated

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Elevated? These aren’t elevated. We just returned to normal.

its higher than its been for 20 years but yes -- over 20 years ago it was considered "normal"

And dramatically lower than 40 years ago.

The last 20 years have been an economic anomaly in so many ways. It was an outlier in the history of mortgage rates.

there's honestly no way to know that there won't be another "economic anomaly" in the future.

Maybe look up the definition of "anomaly" and consider editing your idiotic comment.

doesn't mean we can't get another one someday.

[Anonymous]

Anonymous wrote:Elevated? These aren’t elevated. We just returned to normal.

The United States can’t afford “normal”. Our economy structure, trade deficit and debt balance sheets are basket cases.

[Anonymous]

If mortgage rates go down, expect home prices to shoot up even more.

[Anonymous]

Anonymous wrote:If mortgage rates go down, expect home prices to shoot up even more.

Hasn't the past year or two taught us that the relationship between rates and prices is not very clear? Everyone said prices would come down if rates went up, and that never happened.

[Anonymous]

Anonymous wrote:

Anonymous wrote:If mortgage rates go down, expect home prices to shoot up even more.

Hasn't the past year or two taught us that the relationship between rates and prices is not very clear? Everyone said prices would come down if rates went up, and that never happened.

DP here, true but if rates go down then people could suddenly afford what they were priced out of the year or two. Many will jump on the chance to buy.

[Anonymous]

Anonymous wrote:If an agent tells you to "date the rate," you should immediately fire them. You're marrying your rate and should be prepared to never be able to refinance.

Why? Why would you never refinance?

[Anonymous]

Anonymous wrote:

Anonymous wrote:If an agent tells you to "date the rate," you should immediately fire them. You're marrying your rate and should be prepared to never be able to refinance.

Why? Why would you never refinance?

Because rates would stay the same or go up! You only refi if rates go down far enough to be cheaper (including closing fees). “Date the rate” assumes rates will go down, which is borderline deceptive.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:If mortgage rates go down, expect home prices to shoot up even more.

Hasn't the past year or two taught us that the relationship between rates and prices is not very clear? Everyone said prices would come down if rates went up, and that never happened.

DP here, true but if rates go down then people could suddenly afford what they were priced out of the year or two. Many will jump on the chance to buy.

Exactly. Unless there is another housing market collapse, rate cuts will lead to house price increases. Count on it.

[Anonymous]

another leg up in home prices will happen if rates suddenly go down fast, imagine the bidding wars to finally get your hands on a house. interesting times for sure.

[Anonymous]

Anonymous wrote:

Anonymous wrote:If mortgage rates go down, expect home prices to shoot up even more.

Hasn't the past year or two taught us that the relationship between rates and prices is not very clear? Everyone said prices would come down if rates went up, and that never happened.

OK, so what do you think will happen if interest rates drop?

[Anonymous]

“ The lowest recorded rate for a 30-year fixed-rate mortgage was 2.65% in January 2021,This was likely due to the effects of COVID-19.”

We will never see these levels again.

[Anonymous]

Anonymous wrote:“ The lowest recorded rate for a 30-year fixed-rate mortgage was 2.65% in January 2021,This was likely due to the effects of COVID-19.”

We will never see these levels again.

And that was the median quote. If you had 800+ credit score, decent equity, and SFH you were getting well below 2.65% on a 30Y.

[Anonymous]

Anonymous wrote:“ The lowest recorded rate for a 30-year fixed-rate mortgage was 2.65% in January 2021,This was likely due to the effects of COVID-19.”

We will never see these levels again.

Unless something catastrophic happens - I agree. I think its possible we could see rates between 4-6% again but it could be a while

[Anonymous]

People buying homes with 2023 mortgage rates at 2021 prices are nuts. This can't be sustainable, can it?

[Anonymous]

Anonymous wrote:People buying homes with 2023 mortgage rates at 2021 prices are nuts. This can't be sustainable, can it?

But there has been significant inflation since 2021: CPI is up 18% from Jan 2021 to Oct 2023. So if (nominal) prices are the same as 2021, they are actually 18(ish)% lower in real terms.