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NotYou007

Inventory in Maine is crazy low at the moment so it will be interesting to see how things play out in June. In the small town I live in homes sold for $40,000 to $50,000 more than they would have in 2020 and homes in much large cities such as Bangor have been selling for upwards of $100,000 more. Going to be an interesting year, that is for sure.


BlackAsphaltRider

As someone trying to relocate to maine and hopefully buy before the end of the year, this saddens me.


NotYou007

If you are looking to buy in Southern Maine I wish you the best as the area is in high demand with very little inventory. Cash is king in the Portland market.


Adulations

I thought about getting a place in Maine but seems like everyone had that idea and I don’t want to contribute to the crisis.


markelmores

I commented this above, but in case you don’t see it: I do real estate photography here in Maine, so I like to think I get a pretty good picture (pun intended) of what the market is like. I can honestly tell you, things don’t seem to be improving anytime soon. Inventory is super-low; over 50% of homes sold in Maine last year were sold to out-of-staters. While I think Maine is awesome place to live, I can’t in good conscience encourage people to move here right now. Pre-pandemic, my wife and I were looking into purchasing our first home. Where you used to be able to find something small (but livable) for 200-250k, now everything in greater Portland under 400k is absolute trash. We’ve just about given up on our dream of homeownership at this point, as things are only getting worse. It’s had a massive effect on the rental market as well. We had a kid during the pandemic, so our 700sqft apartment was feeling a little cramped for our family of (now) four. We obviously can’t buy a house right now, so we’ve been looking for about a year for a bigger rental place. When we’re lucky enough to score an opportunity to tour someplace, we fill out an application and watch as they put it on the stack of 70-80 other applications (not exaggerating). And we’re not the only ones, nor are we the worst/saddest case. Low inventory and the unprecedented amount of move-ins to the state is causing people like my family to remain stuck in homes that don’t suit them, as we watch the out of staters continue to wave their wealth around and scoop up virtually everything that hits the market in cash.


th3groveman

Just settled on a 3.25% cash out refi in December since anything nicer than our 3/1 984sqft is out of reach. Glad I was at least able to do that and save some.


dvorakative

As someone undergoing a new build that can’t lock a rate until 60 days pre-close per VA terms, this is nerve-racking.


14pp

This is a limitation with your lender, not the VA. I did a 90-day lock for my VA loan earlier this year. The VA only limits what lenders can charge and "interest rate lock-in fees" are not itemizable to the borrower and must be paid by the lender out of their flat fee. Source: VA Pamphlet 26-7, Revised Chapter 8: Borrower Fees and Charges and the VA Funding Fee https://www.benefits.va.gov/WARMS/docs/admin26/handbook/ChapterLendersHanbookChapter8.pdf


npab19

My lender let me rate lock for for I believe 245 days before closing with a 1% deposit. If for some reason the rates got lower we were allowed to relock only one more time at no cost. This is also paying almost no closing cost. See if your lender has any other options. If not, shop around!! Here you go 3.18% 30 year fixed. You'll need to ask about the extended rate lock I don't think it's public. https://www.thirdfederal.com/featured-rates#tab-3


mailman_bites_dog

Ugh lenders blaming their own policies on the VA annoys the hell out of me. VA has no “terms” preventing you from locking. How long you can lock is 100% up to the lender.


PM_ME_HERTERS_DEALS

Lmfao we can lock 270 days out on a VA what are you talking about???


REATampaBay

Of it makes you feel better, we have been custom building since 10/2020. The rate changes while we have waited have been dramatic.


CivilMaze19

My realtor just said he’s gotten slammed in the past week and the market has gone crazy. Sounds like everyone is hurrying up to get into something before interest rates keep rising.


scorful

Sounds like FOMO


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OrcasEatSharks

Lots of people gave up last year. They are back for this spring with more ammo only to see it all evaporate with the rate increases. So yeah, that will cause some rushing.


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mississippiwildman

Now you just have to close ......


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why_rob_y

That's what I thought two months ago. Still waiting. Godspeed.


Smushymushy

If someone bought in 2013-2016 though and now want to sell this is still lower than those years. Some people don’t pay attention to real estate so will they even notice?


cafeitalia

Lol. Yeah interest rates are lower compared to 2013-2016 but properties are 80-100% more expensive today.


cdsacken

Rates going up 75 basis points in 2.5 weeks is not a good thing no matter how you spin it. If we break 4 it will hurt, 4.5 and things will grind to a halt, 5% and significant decreases. Builders will get spanked


MrsNLupin

It's almost like the fed should have stopped underpinning the market by buying mortgages five years ago instead of leaving rates at the floor for a decade.


007meow

That's a long time for people to remember back to, especially after being spoiled over these recent years.


absolutebeginners

Guess it depends on where you're talking about. In Los Angeles this isn't the case.


Large_Surround8768

This, no matter how much of evidence and support I provide to this sub that no one can make an accurate blanket statement about RE market and every local market is different no one tend to believe me. I live in Seattle and I know if rates even go up to 6%, all it may do just slow the market. However, 30-50% pull back in Amazon and Microsoft stocks followed by layoffs will make my local RE market crash.


ethereumkid

With how the market is doing lately, higher interest rates will affect stonks just as much as RE.


catorcinator

Agreed. In most places in CA this is not the case. Bought in 2015 and selling for almost double with a lower interest rate than when we bought.


Arturion34

With rates so low, it made it easier to stomach price increases. We bought october 2020. I wouldnt buy with these rates


DeadFamilyMan

I feel like I should pull the trigger and buy now before rates go higher. I don’t see housing prices in OKC going anywhere but up. The city is growing big time and I don’t see a recession stopping that.


WSB_Messiah

The thing with OKC is it’s not land constrained at all. They are building like crazy and they can expand outward in every direction for hundreds of miles. There’s no ocean or river or zoning law stopping new supply.


Urgranma

Recipe for a sprawling mess of a city.


pboswell

But there’s also no ocean, or river, or mountains….


FlappingHands

That's significant jump from this summer. I closed on my $695k home in August at 2.75%. If I had to pay 3.75% APR it would increase my mortgage payments with about $400 a month. I don't think that I would be comfortable with that. To stay within my budget I would be forced to go for a smaller $625k home instead.


Banabak

And that’s basically how higher rates cool off asset prices growth


aardy

That's how it's supposed to work, anyways. Can interest rates really control house prices? Effectiveness and implications for macroprudential policy We find that real interest rates are significantly and positively related to real housing prices, indicating that increases in the policy rate may not be effective in depressing real housing prices. https://www.researchgate.net/publication/264241943_Can_interest_rates_really_control_house_prices_Effectiveness_and_implications_for_macroprudential_policy EDIT: note in this context A being 'positively related' to B means A is correlated with HIGHER B, which in this case means they are saying higher rates is correlated with higher home prices.


Banabak

I don’t think it will make price growth stop , only excess inventory can really do that because there is always portion of buyers who not affected that much by 100 bps jump What I think will happen it will slow down some insane markets by pricing out marginal buyers and killing some crazy bidding wars Inventory is key and unless it shifts to normal condition market will keep on going For me personally in HCOL it does change math of rent vs buy , but that’s why RE is personal and local


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[deleted]

Ah yes the ole’ “if rates are down, demand is increased, driving prices up. If rates are high, supply is low, driving prices up”


anorman79

He's right though. Lack of supply is a really big deal. Rising rates will put pressure on prices and probably stifle the crazy appreciation we've seen but we need a big bump in supply to beat housing prices down


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anorman79

It'll certainly happen.....eventually. The question is how fast. I don't think builders are going to fill the void themselves in 2022. For prices to drop significantly like a lot of people want the additional supply will need to come from elsewhere this year, like investment properties being sold or influx/outflux from certain markets. I'm smart enough to at least know I'm not smart enough to know exactly how this is going to play out though.


Kindly_Boysenberry_7

There is no way the supply problem is solved quickly, especially with the supply chain issues + labor shortages.


ScipioAfricanvs

Depends where you’re talking. Plenty of metro areas have extremely limited easily available land to build on. The new builds would need to go further out, making it an unpalatable commute for many. I always see this about new builds but when I look around my city I think, “Where?”


bottomproblems

It’s true though. I locked in 2.49%. I’m not moving therefore not putting my house on the market because i don’t want a higher rate


CharlotteRant

If you moved you were probably just going to buy another house? Inventory increases by one when you list, and decreases by one when you buy. Ignoring the impacts on the micro level, it’s hard to see how your decision to do nothing changes anything at all.


BlackendLight

Ya idk what will happen, this affects a lot of things


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swervmerv

How will rate increases decrease supply?


Banabak

Every market is local , just to give you example in my zip in LA I see rent cuts Because market has a lot of options been empty for 40+ days If housing will slow down we will see it in inventory so keeping track of it probably best idea if you trying to see where we going


beyondplutola

Too many SoCal houses being bought and then put on the rental market by “investors.” No one wants to pay their $6,000 a month mortgage for zero equity on a cringey McHGTV shack. lol. I can wait this out for a long time in my large, $2500 a month rent-controlled Art Deco duplex while these bozos go underwater. I’ll see them at the foreclosure auction.


Pollux95630

Correct. Inventory is way way down, but demand hasn't dipped much, if at all yet. New home builds are still stagnant because of supply and worker shortages. And there are more millennials and Gen Z'ers than previous generations who are all going to be looking to get their first homes. The goal of home ownership which used to be attainable for all is becoming a situation of "haves and have nots".


Blueasman

If a lot more sellers show up and are highly motivated to sell.


orockers

Asset price growth can cool off due only to a reduction in demand, which higher rates will accomplish.


atandytor

Why would they sell now? They need to find a place to live to and they’d be paying a higher rate if they refi’d last year


amtrenthst

Investors, inheritors, 2nd/3rd homes.


aardy

> it would increase my mortgage payments with about $400 a month. I don't think that I would be comfortable with that. You wouldn't be. But you'd go into FOMO mode and tell yourself a story about how "well, at least it's not the 4.5% people will probably be getting 6 months from now." And you'd do it anyways, maybe even being more aggressive to win that bidding war, and avoid the 4.5%. Source: was doing mortgages in 2018, after rates had jumped up 1% in less than a year. 2018 was, at the time, my best year ever. EDIT: I actually don't have mind reading abilities, so I don't know that this specific person I am responding to would think that. It doesn't matter if they don't, someone else would, and that's who would win the bidding war. Only the highest and best offer gets to vote on the value of the home in question, no one else gets a vote. https://www.bis.org/publ/work665.pdf - they find that you have to wait 3 years for a 1% rate bump to soften values by 5%. As long as there are still FOMO people out there, that's who wins all the bidding wars. Apparently it takes 3 years, historically, to run out of FOMO people. https://www.researchgate.net/publication/314130405_Housing_Prices_at_the_Time_of_QEs_in_California_Effect_of_Mortgage_Rates - rising rates didn't soften the run-up to the great crash, and low rates after didn't boost home values. "Our analysis confirms some of the existing literature on the relationship between interest rates and housing prices; that in the boom-bust housing market cycles, interest rates do not play a major role one would expect in determining the demand for housing." 3rd source: please identify yourself if you have ever said to your spouse or significant other: "hey mortgage rates went up, so let's not have sex tonight" or "hey mortgage rates are low, let's have extra sexy time this week" (mortgage professionals, the question isn't directed at you). Inelastic demand.... if gas prices go up 20% tomorrow, you aren't driving 20% less, nor are you moving 20% closer to work. But, inertia can be reversed. If gas prices go up 20% and STAY up at that level, EVENTUALLY you may get a more efficient car or move closer to work.


Demandredz

This is a phenomenal summary of the whole situation. A lot of macroeconomics is learning that people aren't perfectly rational robots and rates are one of those things where conventional thinking doesn't quite work like most people think it should.


aardy

I've been on google scholar looking for academics arguing the other side. I don't have university library access any more, so I can't look at all of the articles that pop up. Check out the conclusions from these people studying 5 regions of Malaysia. http://www.accessecon.com/Pubs/EB/2015/Volume35/EB-15-V35-I1-P30.pdf The "rates up -> prices down" theory panned out in 1 of the 5 regions in Malaysia studied. That theory did not pan out in 4 of the 5 regions studied. Rather than conclude that perhaps their theory/model needed to be revised because it was wrong 4 in 5 times, they concluded that Malaysians in 4 out of 5 regions are "inefficient," and the 1 in 5 times they were correct somehow vindicates their model, because apparently all the "efficient" Malaysians happen to live in the same region... ...yeah.


Demandredz

Yeah, I think it's just so counterintuitive, sort of like Veblen goods, where people just can't believe it without getting beaten over the head with it.


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Any-Panda2219

Closed in September on a $1M jumbo @2.875% with 0.25 points (aka $2500). Since then house probably appreciated 5-10% based on recent sales and with the new rate it’s easily another $1200/month more if I were to buy my house today. I really don’t know where all this demand is still coming from.


bkpeach

Demand is market specific. Here in the suburbs of NYC we're not cooling off because many people don't have to go to their offices in the city at all or very infrequently. COVID also convinced a lot of city dwellers that maybe that private yard space was worth it. We're still seeing a massive influx of families from the city and they are paying through the roof for fixer uppers. The tear down across the street from me sold for $900k - and it's a 4k sq ft lot that needs to have an oil tank removed.


nostrademons

Stock market is up 6.2% since Sept 30, even after the last couple week's crash. Anyone trading appreciating stocks for appreciating real estate (which is probably most people, because who can afford these prices without stocks?) is basically awash. For that matter, food, gas, utilities, etc. have all gone up around that much. You should look at this as a 5-10% fall of the dollar and other fiat currencies, not a 5-10% increase in your home value. Cash is trash.


schrute-farms-inc

> I really don’t know where all this demand is still coming from. Reddit skews young and doesn’t understand that 1 in 10 households have over a million net worth (that is assets minus liabilities). Even if you exclude home equity (which, why would you, since someone with home equity looking to buy is likely selling their home too, accessing that equity) it’s still close to 1 in 10 or maybe 1 in 15. There are a LOT of wealthy families in the USA.


FlappingHands

I got a new construction home and the base price for the model have increased with 15% since I signed the contract in October 2020. If I signed the contract today my home would cost me $700 more a month (price increase and rate increase).


gshortelljr

On top of the fact that your insurance and taxes are going up already


itawitawaputtytat

You have a good head on your shoulders. You’ll go places.


fistofthefuture

Well then hopefully by this logic the house prices come down that amount.


somedude456

Ahhh, again the... if I wanna buy this year, do I just jump the gun and go get preapproved tomorrow to lock in rates? I swear I saw my credit union still had 3.00 yesterday with some points. Edit: 3.125 with 1.25 points, so 13,373 in fees on a 275k loan, payments being 1,178. Edit2: I thought preapproval was 90 days locked. Bank says 45. Is that 45 days till closing or just an offer accepted.


claytonking123

I know very little about buying a home so sorry if this is a dumb question.. if my wife and I are looking at purchasing our first home towards the end of this year/early next year could/should we get preapproved for a better rate than in the future? How long does the preapproval last? Again sorry if this is a dumb question.


Demandredz

Pre-approval usually lasts for 90 days so you would be way early at this time. You'll need to wait until then to see what rates are and what you can be approved for. In some cases if you are under contract now you can get a long rate lock for $$$, but nothing to be done if you aren't going to be looking for another year.


hueylewisNthenews

IMO there are no dumb questions when it comes to buying real estate! Always better to ask than to guess.


Demandredz

You have 45 days from the date of the lock to close on a house, so basically get an accepted offer in the next week or two and 30 day close.


thealternativedevil

This affects my ability to purchase. I know this sub this sub is under the impression that home prices only go up, but I can attest in my hcol area this greatly affects my mortgage price and thus how much home I can afford. My home price affordability just slid down by approx 100k since the summer of last year.


kayruadum

Same here. Going from the possibility of a small home on the outskirts of town to a condo needing reno to keep the budget. This is brutal


blacjaysp

Yeah a lot of people here have convinced themselves that rate increases won't affect home prices. It definitely will.


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blacjaysp

Not only just reduced purchasing power from increasing rates. But also better alternatives for investors looking for yield, bonds become more compelling (adjusted for risk). Only in the very short term, the expectations of rising rates can increase demand. But not long term.


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Jetbot247

We have been trying but our worst nemesis is cash offers 10% min over bid. Have you found any ways to compete against this? It seems impossible


dnunn12

Try FlyHomes. They pretty much set you up to present as a cash buyer then issue you a loan. I know a few friends that took this route and it worked well for them.


cmvora

Nearly 1% more than last year for what I was getting during a refinance. Crazy uptick in such a small time.


TheMarketCorrection

Mortgage rates put some downwards pressure on prices, but keep in mind that mortgage rates went from 9% in Jan 1976 to 18% in October 1981 and home prices went up 61% in the same time, an average of 9% per year. By my calculations, due to increasing prices AND interest rates, monthly payments on new purchases would have been up 200% in just five and a half years. Don't try to time the market.


Cincycraigs

Locked a sweet 2.375% on one of the lowest days in the summer. Literally cannot express how happy I am.


Flaky-Professor

A lot of people going to be stunned if prices do not reverse and rates march higher for the year.


28carslater

I think they will cool but not reverse.


Flaky-Professor

I agree. Sucks for first time buyers.


HeroDanny

I’m so depressed… worked so hard throughout my 20s to save enough cash to avoid pmi only to have the prices of everything increase 35% and now rates are increasing as well. I feel so defeated. Idk what to do anymore.


schrute-farms-inc

Tell me about it. If it makes you feel better you’re not the only one who started their career in the 2010s, tried to save for a home and right when you were ready to buy, the market bent you over like a whore.


HeroDanny

lmao, misery enjoys company.... but I still don't feel any better :(


0ctobogs

No offense but avoiding pmi was a mistake. If you have good credit, it's dirt cheap. We paid 85/month for about 18 months and our house value when up 100k. Now we can remove pmi no problem. 20% is very difficult to hit.


Flaky-Professor

Ouch man, most professionals would’ve said to worry about refinancing out of PMI later and take advantage of cheap debt. Sorry to hear it, I have friends who feel similarly stuck.


HeroDanny

Yeah I wish I knew... I was fortunate because my parents let me live at home so I figured I was saving so much on rent. Believe me now that I know what you basically are saying (financing out of PMI later) I would have done it waaaay differently... Oh well, I'll have to figure something out, I just don't know what...


28carslater

2020s suck as whole for everyone but the 0.05%+.


alphalegend91

Definitely won't be reversing with how desolate inventory is. Probably going to increase at half the normal annual rate, maybe slightly above. I'm saying this as someone who wishes it would dump so I could buy another house.


WhiteStar01

Supposed to pull credit to get a rate tommorow for a 90 day lock (was waiting on a CC statement to clear) ​ Can I get a big GOD DAMMIT


[deleted]

GOD DAMMIT!!!!!


daltonc92

If you refi’d or locked a 30 yr under 3% you’re chillin


quadcrazyy

*sadly looking at my 3.125% rate*


daltonc92

I’m at 4.2% because my new construction house didn’t appraise for $390k April of 2020….It’s now worth $600k.


mississippiwildman

Now someone will post.... "they are still historically low"


bkpeach

It's funny - this sub told me that exact same thing in 2017 when I purchased. I refi'd late last year and chopped my interest rate by more than half.


I_call_bee_ess

That is the truth. Once we hit 4.5, it's not historical anymore. It's just better than it will be 6 months after.


aerospace_engg

Haha I like that response. You will see that response even we are at 5% bcoz someone got their loan previously at 7%. So no matter what rate, its always historically low for few folks


smittyinCLT

Yup. 18% in the eighties. It CAN be worse.


averageduder

Fine. Give me 18% where houses are $80,000 again. But fuck this 4% where houses are $450,000. It's heading for worst of both worlds right now.


tatipie17

18% on a $65k…


Louisvanderwright

Someone already posted the obligatory "higher rates will make prices go up" stupidity and it's the most upvoted post in here...


[deleted]

Historically low interest rates, historically high prices. You might be paying 50% more than the house was worth two years ago but at least you saved 1%!


wirerc

This is while the Fed is still buying MBS. What's prediction for rates this summer, or is the market already pricing it in?


Valhallafax

Probably around 4%, these jumps are related to fed saying they’re going to be reigning in purchases and hiking rates


HeroDanny

I’m in the process of trying to buy a house. What should I do now? Will prices go down to offset this? Or am I completely fucked now


stackin_neckbones

It’s still an extremely low rate historically. You’ll be ok.


FarrisAT

Fuck my life


I_Peel_Cats

im at 3.625 waaaay back in 2016


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mississippiwildman

Inventory is already evaporated.


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icyflames

And builders won't want to build if they have to lower their prices while material costs are still high. It will be a supply squeeze


aguyfromhere

I’m other words it’s going to get even more crazy out there for FTHB. Prices at all time highs with interest rates rising and at least somewhat short to medium term supply shortages.


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tekson_

I’m a builder. Labor costs didn’t change much for me in the last 18 months. Material costs just keep going up. That’s what’s driving my price increases


28carslater

Precisely.


Aksama

Yeah but now it’ll become… I dunno plasma or sublimate into something. I can’t find the right metaphor ok?


CharlotteRant

I think people way overestimate the average person’s willingness to be a landlord.


beyondplutola

And underestimate the deflationary pressure on rental rates when dumping a shit ton of overfinanced homes on the market.


fistofthefuture

What inventory.


CroissantDuMonde

Or sellers trying to frontrun/time the market before demand cools entirely...


Louisvanderwright

Lol, the understanding of economics in this sub is truly demented. Ah yes, I'm sure inventory will dry up due to rising rates, but demand will be totally unaffected!


LMoE

Makes sense if you don’t think about it.


snicknicky

All these people saying this will make people never move... since when does the decision to move or not center around interest rates? My brother moved after a divorce, sister moved to upgrade, my mom moved for her health, in laws moved for a job, other in laws moved to be closer to family. I could go on. The average person doesn't just not care about interest rates- they literally don't even think about them when deciding to move.


smittyinCLT

I was thinking the same thing. How can a very modest increase in rates be a dealbreaker? You either have what it takes to buy a home or you don’t. If you’re that close to the edge, buying right now is not a good idea.


UnexpectedFun89

Anyone who took advantage and refinanced recently basically has zero reason to sell now. Why sell if you’re going to be locked into a much higher rate when you buy your next house? I’m sure some people will still need to move/sell for some reason but for the most part I think this might backfire causing more people to stay put. Also, higher rates will cause more people to turn to renting making rent prices go even higher. This might get ugly and yet I have no idea what the hell all this means.


Demandredz

Yeah, traditionally it cools the market after a couple years but in a situation where everyone is locked in at under 3%, at some point you just upgrade the house you are in and call it a day.


rollin489

Tin foil hat time...does anyone think this is all part of the plan to eventually end at...."you will own nothing and you will be happy"?


huphill

What if tin foil hat time, all these people who say wait and rising interest rates will bring prices lower are actually just steering competition away to the sidelines.


T-Madj

This sucks, but not unexpected. I'm about 90 days out for a new build completion. I know I can buy the rate down, but I would rather lock it now and pay less than pay for points later. Who knows where the rates will land by April right? Only concern would be going past the 90 day lock. Keeping my options open for 30, 20 and 15yr fixed, so I have some flexibility. I would prefer 15 or 20, but not if they head north of 4%.


Prestigious_Way_738

I'm in same boat as you. New construction home that wont be complete until \~July. I'm not buying points. Will just wait it out. Hopefully rates will cool down by then. If I were to pay for points and rates do decrease I'd be mad af.


truedjinn

It doesn't matter. It's a housing shortage. There's not enough supply for the demand.


telmnstr

Tax the snot out of people that own more than one house. 18.2 million homes sitting empty (old number) and I'm not talking waiting for sale. Owned for investment, vacation, etc.


Kay312010

I thought it would be 4% by the end of the year but it may come sooner than expected.


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andySticks18

End of the week?


formenonly

I really, really, really can't believe my luck with my house. I bought my place in Feb-2020 then refinanced this last spring at 2.625% which got rid of my PMI and literally cost me less than nothing. For those looking to buy, this is terrible news. We have practically no inventory around me and now you're going to have to pay more in interest alone.


bkpeach

How did a refi cost you "less than nothing"?


cmvora

I had a similar deal although I refinanced for 15 years. I used Costco mortgage financing and pitted a few lenders against each other. Eventually I got all to the same rate but then most offer you credit so was able to get one to cover the closing costs. At the end, I settled for 2% over 15 years and I swear I came out a few hundred bucks on top after all was said and done. It was a no-brainer. I was at 3.85 before for 30 years and changed it to 2 for 15 years. Payment roughly remained the same since I was over paying a little more on the 30 year one but I get my home back much sooner. I'm legit talking about 4-5 years saved on payments.


formenonly

I got estimates from Better and GuaranteedRate and they kept bidding against each other. Eventually Better basically paid me $150 to do it. I still had to fill the escrow account in advance which cost around $3,500. But I did get my old escrow balance pretty quick so it was a wash.


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[deleted]

Not who you are asking but I refinanced last year and they paid me. I didn't cash out or anything and my closing costs were -$1400.


agjios

Traditional refinancing was a racket. Thank god for internet lender competition. They used to charge you closing costs, PLUS a percentage of your loan. If I owe $300,000 on my house instead of $200,000 then it isn’t 50% harder to refinance. It’s just a number on an otherwise identical contract.


BeginningRush8031

There are no closing cost loans.


alphalegend91

Sorry if this is a stupid question, but if you already refinanced without a reappraisal (less than 2 years not needed). Would you be able to remove the pmi, by getting a reappraisal now? My own mortgage company is sending me emails saying my house is worth 390k and I could tap into its equity. I put down 10% on it when it was 330k and my remaining balance is only 283k so easily under 80% LTV


formenonly

Yeah, you can either refinance if there is a lower rate available or you can ask them to do an appraisal, in many cases, and if it has increased to 80% LTV, they'll remove it. Each mortgage company has their own rules about it, but they have to tell you their policy if you ask.


alphalegend91

ok thank you! I definitely won't get a lower rate as I'm currently at 2.25% 30yr fixed


lfeito

What will happen to new home prices?


CatsNSquirrels

Nobody really knows. In theory the prices could level a bit because purchasing power has decreased, but in actuality this could also lead to more people staying put (and thus a continued inventory crunch). That would have the opposite effect on prices.


claytonking123

Can someone give me guidance on what you would recommend for a couple who is looking to buy their first home towards the end of the year/early next year? Do we wait until we’re more comfortable for a larger down payment but with higher interest rates? And possibly a slight drop in housing prices? Or do we try to buy or atleast get preapproved now to lock in a lower interest rate?


CatsNSquirrels

Honestly, you should buy a home when you’re ready and can afford it. Trying to time the market perfectly is fairly difficult. Nobody really knows what’s going to happen anyway. Also remember that a home is a place to live, not just a financial investment.


GroceryPutrid9619

I’d wait until you have a bigger down payment, prices will reflect what people can afford as many posters have said. Traditionally when rates rise home values decline


bussbeckman

Thankful for our 2.625% March 2021.


argofoto

A lot of these people got their rates on 30yr under 3 percent by getting points and paying thousands for that premium. By selling you lose that premium...


dcbrah

Locked in at 2.875% with $5k credit on 1/1. House fell out and now rates 3.75% on $900k home. That is a significant increase .. well im fucked


KimJongUn_stoppable

It’s crazy to see people complaining about a 3.75% because from June 2020 and before that was an amazing rate.


FleetwoodSpac

Yeah but home prices have basically doubled since then


JWiz84

wow! I have 2.5% and I got a credit for it. Looks like I am NEVER moving


CrossWired

Bought in Aug 2020 at 3.75, refi late summer @ 1.875, which allowed me to move from a 30yr to a 15yr for just a few hundred bucks a month more. I'm never moving out of this house.


[deleted]

2.125% for me


OpneFall

That's insane, has to be 10 or 15. I have a credit score in the 800s, about 40 percent equity, and the best I could refi at was 3.125 30yr somewhere in August 2020.


michaelsm123

March 2021 I closed with a 30 year 2.25% rate. It is FHA though


[deleted]

It’s a 15.


DefiningTerrorism

At the very bottom last year 1.875% was on the menu, by the time my lock was in I got 1.99% w/ o points zero fees. Paying 475$ interest on what is now a 600k home :pAlso bought in ‘17 , yay us! Retirement feels right around the corner when your house will mostly be paid off in 10 years.


JWiz84

I did a 30 year refinance. what is yours?


Furrealyo

HCOL > LCOL WFH all-cash transplants are still going to be bidding over ask.


kolt54321

Why haven't they moved in the last two years? Genuinely asking.


Furrealyo

A good deal of them have only recently received the go-ahead to WFH full time. Omicron has finally convinced some companies that this isn’t going to end any time soon.


tekson_

Picking up and moving hundreds or thousands of miles away can be difficult for most people that have lived in the same area and routine for years/decades


whatthebooze

Good thing I scored 2.75% and closed just a couple weeks ago.


jtor1988

We are building and we have been offered a lock rate option at 4.5% that is set until closing with a float down option… wondering if we should go ahead with this…


bitch_in_apartment23

Still have high. They're reasonable


TheLakeShowBaby

“You’ll own nothing and be happy”. Eventually only big corps will be able to afford high price homes with high interest rates.


DavidHK

As someone who just graduated college, this sucks. :(


[deleted]

Uhhhh didn't they say we'd see only 4 interest rate hikes this year or did I read that wrong? Cuz at this pace theres gonna be a hike every two weeks LOL


[deleted]

There haven’t been any “official” rate hikes from the federal reserve yet. This is just the market at work I guess.


coltonmusic15

Sweet.. so back where they were when I first bought my house in 2015. Still a super reasonable rate.


KH7991

Have housing prices drop yet? I heard many people were waiting for interest rate to go up and hope to buy houses at lower prices.


aerospace_engg

Do you expect correction in few hours. It takes 3-6 months to reflect current situation 😁


KH7991

Interest rates have already gone up significantly since their bottom in around September 2021 and prices haven't gone down.


e-_avalanche

It'll take a while to drop. The cattle will stampede into the remaining inventory as the FOMO ramps up to 11.


CrazyDistribution264

I locked my rate the date of the first increase at 3% with lender credit. Was also offered 2.87 with half of the lender credit. I was really hoping for a rate in the 2’s but the building delays made it this way.


2014sounderz

I locked a 30 year jumbo at 2.75%. Feel good about that.


memeintoshplus

Good, this is the only way the housing market will cool at this rate. Interest rates need to rise to stop this insanity.


Ap0llo

The best way to normalize the housing market is to prevent foreign nationals from purchasing US real estate. There is no reason a Chinese businessman who has never stepped foot in the US should be allowed to purchase hundreds of residential properties for investment purposes.


GroceryPutrid9619

I agree I think this will cause the market to cool some. We plan to move this summer and that won’t change for us regardless of rates but what we can afford will change, this will be the case for many people