Anonymous wrote:If rates go down, prices will go up.

My economics professor told us that if consumers reach a point where they feel prices are just too high, lower rates alone is going to change their behavior. In other words they will wait on the sideline until prices reach a certain level.

The problem is that current homeowners and sellers are so drunk from the home price appreciations that they have enjoyed over the past past 5 years they still think buyers will continue buying at crazy prices.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:[img]

Anonymous wrote:If anyone has the ability to reliably predict future interest rates, please let me know as I’ll shift all of my investments to them.

OP, nobody knows. Also, mortgage rates respond to many economic signals besides the federal funds rate so a reduction in fed funds rate doesn’t necessarily mean a direct reduction in retail mortgage rates.

+100. Get a mortgage now and if rates drop you can refinance

Terrible advice. Of course rates are going to drop.

The problem with waiting to get a mortgage is that you have to perfectly time when you're closing on the house. That's extremely difficult to do if you need a house now.

Agreed. It's not like mortgage rates go down by whole percentages at once, you're looking at tenths of a percent per week. If you have a house you want lined up you could end up losing it to another buyer all because you were waiting for a 0.1% rate drop that would save you like $50 a month.

Anonymous wrote:Looks like rates have dropped a bit recently. If Fed lowers the interest rate in 2 weeks are we going to see even further drop?

Are big banks the best place to look for lower mortgage rates? I have got good quote from Chase, but not sure about others like Citi or BOA, or local banks?

Last time we had a Fed rate drop, mortgage rates did not drop further afterwards - the dropped rates had already occurred anticipating a rate drop.

Anonymous wrote:

Anonymous wrote:[img]

Anonymous wrote:If anyone has the ability to reliably predict future interest rates, please let me know as I’ll shift all of my investments to them.

OP, nobody knows. Also, mortgage rates respond to many economic signals besides the federal funds rate so a reduction in fed funds rate doesn’t necessarily mean a direct reduction in retail mortgage rates.

+100. Get a mortgage now and if rates drop you can refinance

Terrible advice. Of course rates are going to drop.

The problem with waiting to get a mortgage is that you have to perfectly time when you're closing on the house. That's extremely difficult to do if you need a house now.

I think rates will definitely go down. That job report is terrible. People forget that rates were in the 4s even before the pandemic. I bought in 2009 and my rate was 4.5% due to the recession.

If rates go down, prices will go up.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:[img]

Anonymous wrote:If anyone has the ability to reliably predict future interest rates, please let me know as I’ll shift all of my investments to them.

OP, nobody knows. Also, mortgage rates respond to many economic signals besides the federal funds rate so a reduction in fed funds rate doesn’t necessarily mean a direct reduction in retail mortgage rates.

+100. Get a mortgage now and if rates drop you can refinance

Terrible advice. Of course rates are going to drop.

How can that be bad advice? If you can’t afford the house at current rates don’t buy it. If you can afford it and want the house then get the house and you have protection is rates go up and flexibility if rates go down.

because you have to pay closing costs either roll it in and increase your balance or pay out of pocket, they aren't free. It would be nice if refis were free but everyone has their grubby hands out for fees. On a $600k refinance here’s what it really looks like:

Typical fees

Application: up to $500

Origination/underwriting: $300–$500

Appraisal: $300–$700

Credit report: up to $80

Title search & related: $400–$900

Lender’s title insurance premium: about $1,500

Document prep: $50–$600

Recording fee: $20–$250

Reconveyance fee: $50–$100

Escrow prepaids

Property taxes (2–6 months): $800–$3,000+

Homeowners insurance (1 yr + 2 months): $1,400–$1,700

Taxes (Virginia specific)

State recordation tax ($0.25 per $100): $1,500

Local recordation add-on (often ⅓ of state): ~$500

Intangible tax ($0.15 per $100): $900

Totals

Standard fees: $3,000–$4,600

Escrow prepaids: $2,200–$4,700

Taxes: ~$2,400–$2,900

Overall: $7,600–$12,200

And every time you refinance you’re forced to buy a new lender’s title policy even though the title was already cleared. That’s why the title insurance industry is a $16+ billion a year business in the U.S. It feels like a racket: you pay again and again for coverage you already had, and there’s no real reason to get a new one if the title check is clean.

Anonymous wrote:

Anonymous wrote:[img]

Anonymous wrote:If anyone has the ability to reliably predict future interest rates, please let me know as I’ll shift all of my investments to them.

OP, nobody knows. Also, mortgage rates respond to many economic signals besides the federal funds rate so a reduction in fed funds rate doesn’t necessarily mean a direct reduction in retail mortgage rates.

+100. Get a mortgage now and if rates drop you can refinance

Terrible advice. Of course rates are going to drop.

How can that be bad advice? If you can’t afford the house at current rates don’t buy it. If you can afford it and want the house then get the house and you have protection is rates go up and flexibility if rates go down.

real estate agent

Anonymous wrote:[img]

Anonymous wrote:If anyone has the ability to reliably predict future interest rates, please let me know as I’ll shift all of my investments to them.

OP, nobody knows. Also, mortgage rates respond to many economic signals besides the federal funds rate so a reduction in fed funds rate doesn’t necessarily mean a direct reduction in retail mortgage rates.

+100. Get a mortgage now and if rates drop you can refinance

Anonymous wrote:[img]

Anonymous wrote:If anyone has the ability to reliably predict future interest rates, please let me know as I’ll shift all of my investments to them.

OP, nobody knows. Also, mortgage rates respond to many economic signals besides the federal funds rate so a reduction in fed funds rate doesn’t necessarily mean a direct reduction in retail mortgage rates.

+100. Get a mortgage now and if rates drop you can refinance

Terrible advice. Of course rates are going to drop.

Anonymous wrote:If anyone has the ability to reliably predict future interest rates, please let me know as I’ll shift all of my investments to them.

OP, nobody knows. Also, mortgage rates respond to many economic signals besides the federal funds rate so a reduction in fed funds rate doesn’t necessarily mean a direct reduction in retail mortgage rates.

Yes, and the Fed funds rate is a short term rate and long term rates are set by the larger bond market- except when the Fed is directly buying up loans like they did in 2009-2012. Look out for them to start doing that next year once the Trump appointee takes over.

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Anonymous wrote:If anyone has the ability to reliably predict future interest rates, please let me know as I’ll shift all of my investments to them.

OP, nobody knows. Also, mortgage rates respond to many economic signals besides the federal funds rate so a reduction in fed funds rate doesn’t necessarily mean a direct reduction in retail mortgage rates.

+100. Get a mortgage now and if rates drop you can refinance

Oh and you should look everywhere for rates via a broker. Sometimes a big bank offers the best, other times it might be a local credit union. It depends on many things including your personal financial situation (for example, some employers have deals for discounted rates at big banks)

If anyone has the ability to reliably predict future interest rates, please let me know as I’ll shift all of my investments to them.

OP, nobody knows. Also, mortgage rates respond to many economic signals besides the federal funds rate so a reduction in fed funds rate doesn’t necessarily mean a direct reduction in retail mortgage rates.

Looks like rates have dropped a bit recently. If Fed lowers the interest rate in 2 weeks are we going to see even further drop?

Are big banks the best place to look for lower mortgage rates? I have got good quote from Chase, but not sure about others like Citi or BOA, or local banks?