Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Buying a house and sacrificing a really low mortgage rate for the current rates which are so much higher. Any reassurance that the rates should come back down again? Even to 4% or so? Excited about the house but the rate is painful.

Rates are indeed painful right now. Can you you use it to your advantage and offer lower on the house? That’s what we did.

Why would the seller care? I am not understanding what you mean.

- np

Sellers care because there are fewer buyers due to the interest rates.

Except that hasn’t proven to be true. At least not in this area. If anything, the lack of inventory is driving prices up.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Buying a house and sacrificing a really low mortgage rate for the current rates which are so much higher. Any reassurance that the rates should come back down again? Even to 4% or so? Excited about the house but the rate is painful.

Rates are indeed painful right now. Can you you use it to your advantage and offer lower on the house? That’s what we did.

Why would the seller care? I am not understanding what you mean.

- np

NP- Sellers should care because a higher interest rate means the house costs the buyer more than houses that were selling at comparable prices a year ago. Sellers are looking at what their neighbors sold homes for when rates were low and prices were high. The buyer is looking at the total cost so could pay more to the seller when interest rebates were low.

None of that makes any sense.

“Interest rebates?”

The price of a home has zero to do with the interest rate on a mortgage. It’s set by supply and demand and what the market will bear.

It’s not like you go, “oh, interest rates are higher and so now cost of ownership is higher so I will pay a lower price.” I mean, you can try that if you are the only one making and offer, but most likely the seller will reject it and hold out for a better one.

Anonymous wrote:

Anonymous wrote:Buying a house and sacrificing a really low mortgage rate for the current rates which are so much higher. Any reassurance that the rates should come back down again? Even to 4% or so? Excited about the house but the rate is painful.

Tell me how old you are, without telling me how old you are.

The historical low rates from the past few years will not come back for a long, long, long time. Truly, it was not the norm. In the late seventies, rates were 18%. Fortunately around 8% seems more the norm.

I’d be shocked if we saw rates below 5 again in our lifetime.

Anonymous wrote:

Anonymous wrote:Buying a house and sacrificing a really low mortgage rate for the current rates which are so much higher. Any reassurance that the rates should come back down again? Even to 4% or so? Excited about the house but the rate is painful.

Rates are indeed painful right now. Can you you use it to your advantage and offer lower on the house? That’s what we did.

The price of a home has nothing to do with interest rates on a mortgage.

Anonymous wrote:Buying a house and sacrificing a really low mortgage rate for the current rates which are so much higher. Any reassurance that the rates should come back down again? Even to 4% or so? Excited about the house but the rate is painful.

No, I wouldn’t count on that. The economy would really have to be in the shitter. And Biden’s economy is roaring.

Maybe if Trump or DeSantis get into the White House and make a mess of things like Republicans tend to do? But even that would take some time.

Anonymous wrote:Buying a house and sacrificing a really low mortgage rate for the current rates which are so much higher. Any reassurance that the rates should come back down again? Even to 4% or so? Excited about the house but the rate is painful.

Tell me how old you are, without telling me how old you are.

The historical low rates from the past few years will not come back for a long, long, long time. Truly, it was not the norm. In the late seventies, rates were 18%. Fortunately around 8% seems more the norm.

The first house I bought had a 7.875% interest rate, which was pretty incredible for the time. Rates fluctuate. They will go up and they will go down. If history is any indicator yes, rates will drop at some point. My crystal ball is broken so I can’t predict when that will be. But please don’t buy a house at todays’s rate that you can’t afford at today’s rate.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Buying a house and sacrificing a really low mortgage rate for the current rates which are so much higher. Any reassurance that the rates should come back down again? Even to 4% or so? Excited about the house but the rate is painful.

Rates are indeed painful right now. Can you you use it to your advantage and offer lower on the house? That’s what we did.

Why would the seller care? I am not understanding what you mean.

- np

Sellers care because there are fewer buyers due to the interest rates.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Buying a house and sacrificing a really low mortgage rate for the current rates which are so much higher. Any reassurance that the rates should come back down again? Even to 4% or so? Excited about the house but the rate is painful.

Rates are indeed painful right now. Can you you use it to your advantage and offer lower on the house? That’s what we did.

Why would the seller care? I am not understanding what you mean.

- np

NP- Sellers should care because a higher interest rate means the house costs the buyer more than houses that were selling at comparable prices a year ago. Sellers are looking at what their neighbors sold homes for when rates were low and prices were high. The buyer is looking at the total cost so could pay more to the seller when interest rebates were low.

They should not go down again based on most history outside of the last 15 years, actually -- rates were not typically as low as they'd been after the financial crisis or the pandemic. See this chart: https://fred.stlouisfed.org/series/MORTGAGE30US

Why would you give up your low rate? No, they will not come back down to 4% for years. Maybe 5.5.

It's quite possible that rates will go down in the coming months if the financial sector uncertainty continues.

Anonymous wrote:

Anonymous wrote:Buying a house and sacrificing a really low mortgage rate for the current rates which are so much higher. Any reassurance that the rates should come back down again? Even to 4% or so? Excited about the house but the rate is painful.

Rates are indeed painful right now. Can you you use it to your advantage and offer lower on the house? That’s what we did.

Why would the seller care? I am not understanding what you mean.

- np

Anonymous wrote:Buying a house and sacrificing a really low mortgage rate for the current rates which are so much higher. Any reassurance that the rates should come back down again? Even to 4% or so? Excited about the house but the rate is painful.

Rates are indeed painful right now. Can you you use it to your advantage and offer lower on the house? That’s what we did.

Buying a house and sacrificing a really low mortgage rate for the current rates which are so much higher. Any reassurance that the rates should come back down again? Even to 4% or so? Excited about the house but the rate is painful.