Thread: Mortgage Rates
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Old 09-26-2022, 1:39pm   #9
Onebadcad
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Originally Posted by dvarapala View Post
Just be glad it's not the 1980s with double-digit mortgage rates.
That will happen, not sure how soon.

Fannie / Freddie 30-year rates were 2.625% in DEC 2021.
Today we are at 6.875%, will be over 7.00% tomorrow, as 10-year Treasury still climbing at 3,900%, up 20 BPS today, cannot recall seeing such a huge swing in one session.

You could see 10.000+% by EOY, you could see over 12.000% before it starts falling.

Home unit sales are down, list prices are being cut by all sellers.
The new housing industry is DONE, no one except cash buyers and those relocating to another state will be looking at these.
Those in contracts will get denied by underwriting due to excessive debt-ratios due to the rising rates, many who may still qualify will walk from their deposits as they cannot budget for $1,000+/month higher payment than was estimated when they entered contract--many signed contracts that leave them open for builder liabiility if they cancel contract.
New home builders, and their subs, will get hammered, no way to stop the avalanche.
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