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As a result, 30-year fixed rates held above the 3%What a difference 40 years makes! On January 10, 1981, I closed on my condo with a fixed rate of 12-3/4%, $50K financed for 20 years. I considered myself lucky because it was fixed. A lot of people had to get adjustable rate mortgages and by the time it adjusted, it would cost them $100 or more a month. I lived there 24 years.
What a difference 40 years makes! On January 10, 1981, I closed on my condo with a fixed rate of 12-3/4%, $50K financed for 20 years.
Did you refinance when rates dropped?No, I didn't want to fool with all the hassle.
I've seen a surge in listings in St Augustine as well.
Did you refinance when rates dropped?I had only financed $25K since I'd put 50% down. It was 6463 Bordeaux, 75209. The last time it sold it went for over $200K, 1027 square feet. https://www.zillow.com/homes/6463-bordeaux-75209_rb/26904170_zpid/?source=patrick.net
Al_Sharpton_for_President saysAs a result, 30-year fixed rates held above the 3%What a difference 40 years makes! On January 10, 1981, I closed on my condo with a fixed rate of 12-3/4%, $50K financed for 20 years. I considered myself lucky because it was fixed. A lot of people had to get adjustable rate mortgages and by the time it adjusted, it would cost them $100 or more a month. I lived there 24 years.
These prices don’t make any sense to me.
If we thought the 2006-2007 housing bubble was big, check out this one.
after Powell's comments today, do the people who hope for 10% mortgage rates still think this we happen in our lifetime?
If we thought the 2006-2007 housing bubble was big, check out this one.
joshuatrio saysI've seen a surge in listings in St Augustine as well.
There is a shitload of buildable land in St John's and Flagler county. And lots of building going on in the area as well. Any seasoned real estate investor will tell you to not buy in an area where there is lots of building.
Any seasoned real estate investor will tell you to not buy in an area where there is lots of building
No. But it would be nice if we had normal rates instead of near zero rates.
Low Interest Rates Are the Root of All Economic Evil
And YOU are about to pay the price.
Patrick saysLow Interest Rates Are the Root of All Economic Evil
And YOU are about to pay the price.
He gets a lot wrong. Like how we must begin immediately reshoring manufacturing. We have been. First under Trump and now accelerated because of COVID. And the collapse of the globalist world order will make this permanent. America is in a period of reindustrialization not seen since WW2.
But he's right about the debt.
Low interest rates are not a bad thing
Mortgage rates rising will slow down the rise of house prices, which rose quickly lately.
Low interest rates are not a bad thing
yep, housing bears hope that a rate increases will reduce RE prices. However, RE prices will continue to rise but the growth rate slows which is healthy for the market.
First time home buyers are f'ed as the increase in rates and the increase in prices will continue to crush their affordability.
PeopleUnited saysDon’t get cocky, what if the globalists eliminate or severely cripple the US and move on with their plans unhindered by American Exceptionalism.
They can not maintain the world order let alone expand it w/o the US.
When you start to think you are all powerful and irreplaceable...
WineHorror1 saysThe globalist world order is in collapse?
Yup. Going to take 5 years. Covid accelerated the process.
The Order requires ongoing active US support. That's no longer happening notwithstanding the goons running the Biden shit show.
clambo saysLow interest rates are not a bad thing
Yes, low interest rates are a bad thing. Easy credit has bid up the price of housing and education, and has devastated savers. Responsible consumers must compete with irresponsible adolescent types who do not care about taking on absurd debts, just so long as they can have it now.
Comments 1 - 40 of 47 Next » Last » Search these comments
Mortgage rates were on the rise once more in the second week of 2022.
In the week ending 13th January, 30-year fixed rates surged by 23 basis points to 3.45%. 30-year fixed rates had risen by 11 basis points in the week prior. As a result, 30-year fixed rates held above the 3% mark for an 9th consecutive week.
Compared to this time last year, 30-year fixed rates were up by 80 basis points.
30-year fixed rates were still down by 149 basis points, however, since November 2018’s last peak of 4.94%.
Freddie Mac Rates
The weekly average rates for new mortgages as of 13th January were quoted by Freddie Mac to be:
30-year fixed rates jumped by 23 basis points to 3.45% in the week. This time last year, rates had stood at 2.65%. The average fee remained unchanged at 0.7 points.
15-year fixed rose by 19 basis points to 2.62% in the week. Rates were up by 46 basis points from 2.16% a year ago. The average fee rose from 0.6 points to 0.7 points.
5-year fixed rates increased by 16 basis points to 2.57%. Rates were down by 18 basis points from 2.75% a year ago. The average fee fell from 0.5 points to 0.3 points.
According to Freddie Mac,
All mortgage types saw rates rise, driven by the prospect of a faster than expected tightening of monetary policy.
The shift in sentiment was driven by a continued pickup in inflation exacerbated by uncertainty in labor and supply chains.
In spite of the rise in mortgage rates this year, purchase demand has yet to reflect the jump in rates.
Given the fast pace of home price growth, however, it will likely dampen demand in the near future.
Mortgage Bankers’ Association Rates
For the week ending 7th January, the rates were:
Average interest rates for 30-year fixed with conforming loan balances rose from 3.33% to 3.52%. Points decreased from 0.48 to 0.45 (incl. origination fee) for 80% LTV loans.
Average 30-year fixed mortgage rates backed by FHA increased from 3.40% to 3.50%. Points increased from 0.42 to 0.45 (incl. origination fee) for 80% LTV loans.
Average 30-year rates for jumbo loan balances increased from 3.31% to 3.42%. Points fell from 0.38 to 0.36 (incl. origination fee) for 80% LTV loans.
Weekly figures released by the Mortgage Bankers Association showed that the Market Composite Index, which is a measure of mortgage loan application volume, increased by 1.4% from a week earlier. The Index had fallen by 2.7% from 2-weeks earlier.
The Refinance Index slipped by 0.1% in the week ending 7th January and was 50 basis points lower than the same week a year ago. The index had declined by 2% from 2-weeks ago. The refinance share of mortgage activity decreased from 65.4% to 64.1% in the week ending 7th January. The share had risen from 63.9% to 65.4% in the 2-weeks prior.
According to the MBA,
Mortgage rates increased significantly as the FED signaled tighter policy ahead, pushing yields higher.
30-year fixed hit 3.52%, its highest level since March 2020.
Rates at these levels are quickly closing the door on refinance opportunities for many borrowers.
Applications remained at their lowest level in over a month.
The housing market started 2022 on a strong note. However, the strength in growth will be dependent upon a more rapid growth in housing inventory to meet demand.
https://www.fxempire.com/news/article/u-s-mortgage-rates-surge-in-response-to-u-s-inflation-figures-for-december-867127?source=patrick.net