anyone paying attention the mortgage rates?

ive noticed them slowly creep up and yesterday was crazy on the wells fargo site.
it was 4.25 the 4.25 this morning and not its 4.5.
i always check usbank, chase, BOA
and they are all high
i also just realized that the Dow jones dropped over 300 points..
does anyone understand if this might bring down the rates? this is all so confusing.

ive been watching the rates since 5/22 and they were 3.625 and now 4.5 i need to lock in and freaking out!!!!!!!!!!!!!!!!!!!!!!!!!!!

Re: anyone paying attention the mortgage rates?

I am in the same boat as you. It is making me sick!!!!! literally!!!

I am really hoping for a dip!!!

Our mortgage broker said its hard to even lock a rate today b/c the rates are changing every 5 minutes or so. insane.

It is just unfair for those that went into the contract process with one rate in mind, and now its like a full percentage higher. It sucks!

Re: anyone paying attention the mortgage rates?

Same situation as you both!! Driving me absolutely nuts! Got a quote for 3.625 at the beginning of May and we need to rate lock in the next two weeks. The current 4+ rates are driving our monthly payment higher than we are comfortable with but we have NO control over the rates!

anyone paying attention the mortgage rates?

You have no idea how much I've been looking at the rates. I went into contract in April knowing I wouldn't be able to close until mid July at the earliest due to a tenant in the house whose lease expires in July (so I knew this was a danger). So I couldn't lock in my original quoted rate which was 3.625. Then the rates slowly went up and up. Yesterday they spiked after Bernanke spoke. DH and I bet wrong on this- we felt that Bernanke would say the Fed is going to continue it's bond buying program (which he did) and that the market would react well to this. We were wrong. Stock prices tanked as did bond prices (hence why rates spiked). If I locked in today, it would be 4.6.

I regret not locking in in April and paying $4k for a 120 day lock. I knew rates were in danger of going up but I didn't think rates would spike like this.

Shoulda woulda coulda I guess...

Message edited 6/20/2013 3:59:13 PM.

Re: anyone paying attention the mortgage rates?

it is really insane. the whole point of this program was to ease lending and not create a bubble

and while the mortgage regulations are more rigorous and it is not likely that the new buyers will default, there is a serious need for those that are in contract but havent been able to lock.

we are literally stuck. this change is NOT GOOD FOR US at all...but we will find a way to make it work (God willing!!!). but i feel bad for everyone in this situation. even people that were cautious in what they were buying,i dont think could have projected a jump like this. we are talking about HUNDREDS of dollars a month difference

it is just awful.

anyone paying attention the mortgage rates?

I put up another post about refinancing shortly after buying. I'm curious because some analysts seem to think that once all the panic and frenzy is over, the 10 year treasury note yield will go back to 2%. If that eventually happens, I will want to refinance.

Re: anyone paying attention the mortgage rates?

i think you can refinance whenever

Re: anyone paying attention the mortgage rates?

but if we have a magic fairy it would be nice to know when this panic willlll stopppppp lol

Re: anyone paying attention the mortgage rates?

It's crazy! I'm in contract now and was previously locked at 3.75. That application got denied for reasons that I'm still not clear on. Submitted a new application with all the missing documentation. Today the rates were 4.625! Crazy. It's about $300 extra a month. More than I can afford. I don't know if I have any options

Re: anyone paying attention the mortgage rates?

Re: anyone paying attention the mortgage rates?

It is SO important that buyers realize that rates AND house prices are going up. A lot of buyers seem to not understand that rates directly impact their purchasing power. If someone is preapproved for $400K assuming a 3.75% rate, they will not be able to afford a $400K home if rates are 4.75%. I know a lot of buyers who are sitting on the fence and being overly picky about houses, not wanting to "settle," but I am trying to explain to them that if rates go up (as prices continue to rise), they may not be able to afford anything, or they may only be able to afford a condo, say, instead of a home!

I think a lot of people think it's just real estate agents trying to create urgency to buy, but there really is a true urgency here, esp. for buyers who are limited to homes in a lower price point for the area they are looking in.

But on the upside - - rates in the 4s (while seemingly high after we've been in the 3s for so long) are still so historically low! Even in 2008 when I bought my house, the best rates were in the low 6s. And when our parents bought, rates were like 18%! So I guess it's all relative.

ETA - Sellers who are thinking of selling need to also realize that as rates go up, their buyer pool shrinks (because less people can afford the home). So I think now is a great time to sell, too. The more people who can afford the home, the greater the buyer pool, and the more likely you can get top dollar for the house!

Message edited 6/20/2013 6:43:29 PM.

Re: anyone paying attention the mortgage rates?

We went into contract in March but with an August close, when the seller agreed to move to July the rates had just dipped and we locked at 3.5, we were nervous bc we were cutting it close and will likely have to pay $700 for an extension or $1500 for two extensions but hearing this I am glad we locked bc 1500 is better than what it would cost over the life of the loan..I feel so bad for people who had 3.5 in mind--that is big difference in monthly payments

anyone paying attention the mortgage rates?

Christine, housing prices were going up for a while. We were browsing but not ready to buy since 2009 (when rates were 5 or 6 percent). We did notice that in 2011 and 2012, prices were a lot higher than in 2009. But rates dropped a lot in that time so people were able to purchase more.

If rates continue to surge like this, I really think it will push back housing prices. Rates and housing prices have gone up together in the past but I'm pretty sure those were times of inflation.

I don't think staying at 4.5 will do much but rates moved .5% in a day!

Re: anyone paying attention the mortgage rates?

I've been watching. We are supposed to refi to 15 year but the 15 year rate is almost the same as the 30 year rate we have currently. Very frustrating

Message edited 6/20/2013 9:10:44 PM.

anyone paying attention the mortgage rates?

The rates have been fluctuating like this since late January--I was so pissed when the rates went up right before we locked in our rate in March. Christine is right though--housing prices in my neighborhood have started to go up since we went to contract at the end of last year.

Re: anyone paying attention the mortgage rates?

Re: anyone paying attention the mortgage rates?

sorry, i know how you feel, it sucks. this happened to us two times, when we first bought our house and then when we refinanced 2 years later. we locked in as rates were going up, and then right afterwards they went way down (figures). it would be nice to have a crystal ball!

Re: anyone paying attention the mortgage rates?

Posted by Century 21 Dallow - Christine Braun

Posted by marianne13

Christine, housing prices were going up for a while. We were browsing but not ready to buy since 2009 (when rates were 5 or 6 percent). We did notice that in 2011 and 2012, prices were a lot higher than in 2009. But rates dropped a lot in that time so people were able to purchase more.

If rates continue to surge like this, I really think it will push back housing prices. Rates and housing prices have gone up together in the past but I'm pretty sure those were times of inflation.

I don't think staying at 4.5 will do much but rates moved .5% in a day!

Interesting that you think they've been going up for awhile.... what areas you were you looking, if you don't mind me asking? In general, the prices have stayed pretty flat in Nassau and Suffolk (and even Queens) over the last couple of years. We run MLS stats and market reports to check trends, and that's true.

But I am sure certain areas have seen a rise even in a relatively flat market. There are always areas that don't follow the general trend.

But in the areas I do a lot of work in - e.g., Wantagh, Bellmore, Merrick - the prices have gone up significantly since January. Buyers who are looking in the under $400K price point have so much competition, because that inventory has really dwindled. I am seeing so many multiple offer situations, and houses are going for above asking, if they are priced to sell.

Rates of course fluctuate daily, and I know there have been some upticks. But all of the mortgage guys I know and talk to have been saying that they are starting to go up now and will stay up. They've been held artificially low for some time now, and as the housing prices go up, they seem to think the rates will continue to as well. Which kind of thwarts some of the economic recovery that the artificially low rates were designed to assist!

Re: anyone paying attention the mortgage rates?

We just closed on a refi at 3.6% with Cole Taylor. it is amazing how high the rates are climbing. Our previous rate was 5.75%in 2009.

Message edited 6/21/2013 12:12:04 PM.

Re: anyone paying attention the mortgage rates?

They dropped a little on the WF website. I just checked. 4.375. Waiting for broker to confirm

anyone paying attention the mortgage rates?

the rates are continuing to go up, however the quick jump today was from the market being down 300points yesterday. it should go back down a little next week...granted it wont be at the 3.25 mark where it was a few weeks ago but hopefully it doesnt stay at 4.5

Message edited 6/21/2013 1:59:13 PM.

Re: anyone paying attention the mortgage rates?

i just noticed wells fargo back up to 4.5
this is nuts!!!!!

Re: anyone paying attention the mortgage rates?

The chairman of the Fed held a press conference yesterday saying that if the economy keeps improving, the government is going to ease up on stimulus programs. Interest rates have been low for a long time because the Fed is keeping them low. That should change later this year. With this announcement, the market went nuts yesterday afternoon, and rates actually did go higher. They're going to keep rising as unemployment gets better and the economy recovers.

Some light reading on this: As Chairman Ben Bernanke Clarifies Fed's Moves, Markets Freak

Message edited 6/21/2013 3:51:19 PM.

Re: anyone paying attention the mortgage rates?

Wells ended the day at 4.875. This is so heartbreaking

Re: anyone paying attention the mortgage rates?

Historically, these are still incredibly low interest rates.

They have been artificially low for way too long.

My parents first mortgage was 12%...