Mortgage Rates

[LATB]

Originally Posted by bsmith

I've never been comfortable with debt, but when we bought new cars in 2020/2021, I actually financed part of them at 1.89% & 2.09% for 60 months, figuring it would be a long time until we see money that cheap again.
Plan was to sit on cash and be ready when shit hit the fan.

Sitting on cash sucks, seeing it devalued every day.

I go back and forth over what I should be doing right now.

I agree and hate debt. And at my age a mortgage or car/truck payment is a frightening endeavor.

But…
When John Deere offered me 0% for 5 years I could not pass it up. And when you finance with JD they offer insurance on everything you purchase. This includes the tractor and equipment trailer and over 10K in implements.

Even the insurance is financed at 0% for the 5 years.


All insured for $1,100. For the full 5 years. Holy Crap what a bargain.

[DAB]

Originally Posted by LATB

I agree and hate debt. And at my age a mortgage or car/truck payment is a frightening endeavor.

But…
When John Deere offered me 0% for 5 years I could not pass it up. And when you finance with JD they offer insurance on everything you purchase. This includes the tractor and equipment trailer and over 10K in implements.

Even the insurance is financed at 0% for the 5 years.


All insured for $1,100. For the full 5 years. Holy Crap what a bargain.

i have a shovel.....wood handle...actually 2: curved (digging) and flat (transfer).....they aren't insured, but they are locked up at night.

[16again]

Bought my current house in January 2022. 3.5% Got in just as the rates started increasing. If I were to buy now, I honestly couldn't afford it. FJB!!!!

[bsmith]

Originally Posted by 16again

Bought my current house in January 2022. 3.5% Got in just as the rates started increasing. If I were to buy now, I honestly couldn't afford it. FJB!!!!

I've paid ahead on our mortgage from day 1.
Refinanced about 18 months ago @3%.
I still pay extra monthly, but less than in the past.

Part of me wishes I'd have done cash-out and finished the basement.

[Ill Duce]

Originally Posted by Onebadcad

It is going to get A LOT WORSE, before it starts getting better.

Today, Fannie / Freddie, 30-year fixed is 6.875%, FHA and VA about the same.


10-year Treasury is at 3.90%, up 18 basis points today.

I predict we will be over 8.000% by Thanksgiving, we will definitely see 10.000+% before rates start falling.

The increase in mortgage rates will CRUSH the housing market, it already has, and then the rest of the economy will crater.

This will get much, much worse:

1) the fed raising the discount rate every six weeks has done nothing in the past nine months except hurt the economy

2) it will do nothing quickly, long-term, 18+ months, will work, as it will cra
ter economy, but the cost to the average person will be very severe

3) unemployment numbers are UTTER BS, how many people are not being counted, what is participation rate, AND those working are not keeping up with inflation, they buy less, or they do not buy

4) GDP will continue to decrease, unemployment will skyrocket, retailers will get crushed--walmart and target will get payback for their wokeness, as their employee costs with benefits and transportation costs will put ALL STORES in the negative

5) unemployment will increase greatly as retailers shut down, most do not have the deep pockets as walmart, expect to see many store closings and bankruptcies, due to increasing costs and decreasing revenues

6) consumers, at least those not on the taxpayer teat, have already amended their spending, they only buy what they need AND eat out less--restaurants will have a much higher fail rate than retailers, fedex gave the warning shot, they are down 43% in nine months

7) not all is bad, you can get your student loans forgiven, illegals will get free housing & food & clothes & cell phones & team mexico futbol polos, and manchin's supporters will get a huge return on investment

8) and best of all, that $50+T National Debt we will have by 2025 is just a number, it will not affect your income tax, cap gains, real estate values, retirement, social security and medicare--at least depends joe said so

According to the subhuman vermin trash realturds this is all FAKE NEWS

[LATB]

Originally Posted by Ill Duce

According to the subhuman vermin trash realturds this is all FAKE NEWS

Link us up sport.

[Ill Duce]

Oh yeah and just as I predicted Douggie screwed his mom into a $200k underwater house

[Ill Duce]

Originally Posted by 16again

Bought my current house in January 2022. 3.5% Got in just as the rates started increasing. If I were to buy now, I honestly couldn't afford it. FJB!!!!

Congrats you bought at the top of the market, that house is going to drop in value with every mortgage rate increase

[LATB]

Originally Posted by Ill Duce

Oh yeah and just as I predicted Douggie screwed his mom into a $200k underwater house

Many of us made the point that her best move was take the market cash out of the trash juice house and scale down ahead of the predicable slow down.

Although I believe she is all cash, so any loss will be market equity money and not under water.

[Yadkin]

2.25% on a 15 year here. Less than a year ago. Now comes the housing crash. Then I can do an addition.

[MikeB]

Originally Posted by dvarapala

Just be glad it's not the 1980s with double-digit mortgage rates.

1982. I had a job offer that would relocate me back to where I was born.
I initially accepted, but turned down the offer 1 week later because
mortage rates were 16% (WTH, I was getting 14% money market rates back then).
Anyway, 1983, rates fell to ~8%, and I made the move that year.
A few years later, I had refinanced twice, down to ~5%, and that's
how I ended up on the current house until 2009.

But, really, what's a mortgage?

[16again]

Originally Posted by Ill Duce

Congrats you bought at the top of the market, that house is going to drop in value with every mortgage rate increase

So far it's only increased 50K in value. That's without any of the improvements I made. Luckily, It was under valued. Lady just wanted out.

[LATB]

Originally Posted by 16again

So far it's only increased 50K in value. That's without any of the improvements I made. Luckily, It was under valued. Lady just wanted out.

Good job

I was going to ask Duce how he could possibly know the details of your deal? And just because interest rates go up it doesn’t necessarily mean your home value will go down. That Duce is always such a ray of sunshine.

[Old Ben]

Originally Posted by dvarapala

Just be glad it's not the 1980s with double-digit mortgage rates.

Yet....

[Dan47]

Originally Posted by Ill Duce

Congrats you bought at the top of the market, that house is going to drop in value with every mortgage rate increase

Drop in price not necessarily in value.

[Onebadcad]

MORTGAGE RATES, SEP 27TH:

The 10-year was still rising yesterday, finished up 22 BPS at 3.88%.
Today, rising again, at 3.95%, up 7 BPS.
Many predicted the increase, very few predicted how quickly and how high rates are today.

Today, 30-year fixed with Fannie/Freddie at 7.375%, FHA and VA about the same.

[sublime1996525]

I'm so glad I was able to refinance in 2020 at 2.375% for a 30 yr. I also pay extra on principal. The house needs to be paid off before I'm 60.

[Taurus]

I refinanced my mortgage at 2.65% the month before I retired in July 2021. I had a chance to pull money from an ESOP to pay off the mortgage or keep it invested. The ESOP has paid off very well, up 22% in the past 2 years and doing well again this year so I’ll keep it there until we have to cash out and will pay off the mortgage then. Other than that I don’t do debt and don’t plan on starting. I won’t be a slave to interest.

[Onebadcad]

The 10-year Treasury Yields sits at 3.98%, the last time it was 4.00%, or higher, was 2010.

While not a 1:1 correlation with mortgage rate, it is a good barometer, and a big influencer.

Many will agree the treasury yields increase due to a lesser confidence in the US GOV vs. alternative investments, which cannot offset the higher returns offers to treasury buyers.

Many current investors that exit the equities will not purchase treasuries, as not their strategy, the will sit on cash until they feel there are new opportunities in the equity markets.

Failure to sell debt will result in offering higher yields, which will affect all consumer debt rates.

[Egnalf]

Originally Posted by Ill Duce

Congrats you bought at the top of the market, that house is going to drop in value with every mortgage rate increase

I am curious what you think of this: I bought a new home last august, right at top of the market. Only took a smallish mortgage though. I also refi'd home two to a 20 year note on a jumbo. both at 2.75%. Now, I am sitting on debt totaling low seven figures at 2.75%.