Jun 6, 2009
Mortgage Rate Predictions Looking Bleak for Home Owners
AUTHOR: Patty Cramer
Mortgage rate predictions were extremely easy to make from October of 2008 until just two weeks ago; in more words or less, mortgage rates were going down, down and down some more. There were some weeks where rates saw a slight bounce of .05% or so but nothing compared to have happened last week. Mortgage rates saw a jump of almost 50 basis points as rates went form 4.91% to 5.29%. This is very bad news for current and future home owners.
Many would say that it will lower home prices because mortgage rates are going higher but aren’t home prices extremely low already? Now that you know mortgage rates are going higher, possibly much higher, are you going to give up on refinancing? If you were in the market to buy a new home, has this changed your mind?
I thought Obama and the dems were going to help get the housing market stable? I thought they were going to create jobs so incomes could catch up with the cost of housing? I thought they were for the middle class? I thought they were going to help those in foreclosure? Considering they dictate just about everything else they may as well dictate interest rates. Right? Hey, maybe they are dictating interest rates!!!!! So we can have more foreclosures because many people will walk away from their homes when they are worth nothing. Hey, at least everyone will have substandard healthcare.
It is what it is–you ain’t seen anything yet! We’re going to have the worst inflation, and depression this world has ever seen–Obama is setting the stage and he’s sopopular no one is challenaging him on anything–a sad state of affairs, those that voted for him–deserve it!
What are we Americans complaining about? We created this mess. We overspent, over-borrowed, over-no-cared, thought the world would be perfect by being irresponsible and it would never catch up to us. Our children are all obese, we rank over 20 on education among first world countries. Our government invades countries and we just still idle why innocent people die. We deserve every second of this!
I’m no economist but after watching and listening here’s what makes sense to me. Inflation is coming, big time and this could be the beginning or it could be just a rate blip. Time will tell. Human nature is to wait until the “perfect time” to make a move. What I’ve seen over and over is the majority wait too long to make their move.
From an ex-banker of 23 years who helped create intrusive banking controls and one who has seen recessions happen twice before in his life, this president nor any president in the future will NOT be able to stop the government of bankers within our government from MAKING recessions and depressions happen over and over again until we the people plead for a One World Government. Then and only then will they have complete control of your lives and finances like they have planed. My part was small, I am So Sorry for us all.
Well, I was about to sign a contract on a new home but with interest rate going up .5% in days, I am going to walk away. people are still losing jobs, expenses are going up.
I was about to put my deposit down at 5% but now the lender says 6.25%. William Lyons Mortgage is the worst to work with.
I have been discipline in reducing my credit card dent and saving up 40k in the past 5 years. I am in the market to buy a 180-200k home with 20% down payment. My FICO scores: 701, 713, 720
And let me tell you, I refused to sign contract until I see the builder and 2 other lender’s good faith estimate on my 30 yrs fixed APR. When they quoted me 5.65%, I turned around and walked away.
So YES, home buyers will ABSOLUTELY STOP buying and disappear when mortgage rate goes up.
My line-in-the-sand is 30 yrs at 5.0 APR as back in March. That rate brought me out to shop and qualify for a home. Above it… I am keeping my money in my pocket.
No one had come to save my family when I’m in financial trouble so I am keeping my cash until the deal is good for ME. Period.
To San Diego:
No worries my friend.
No need to get pressured into buying in at high mortgage rates.
The money is in our pocket and it’s us signing on for mortgages… i.e. we are the paying guy for the next 15 to 30 years.
Everyone else want our money. they don’t get pay until we open our pockets and sign at the dotted line.
Within 3 days after I walked away from buying the house, all 3 lenders including the builder’s own mortgage company lowered their APR without adding cost to me. The builder lowered APR from 5.685 to 5.25 just like that. Even big bank Ch### lowered from 6.0 to 5.65 (if that local branch don’t pick up on business even the lending manager will be out of job soon)
They are more desperate than us, so don’t get ripped off by all those people wanting your money and try to hike up cost everywhere.
You see a even dollar charge you don’t like, tell them you will walk away. I got the total closing cost from 63000 down to 3900, i just cross out all the garbage/padding fee, they told me no way, i walked, then they lower it few days later. They are all tricky yet it’s that simple to fix it.
I’m waiting for 30 yrs at 5.0 APR with my 700+ FICO. and if it never happened again then Okay. My 40k cash has already returned 36% earning sitting in my portfolio since January. I will simply take the earning out by year end and spread it into IRA for wife and myself and 529 plan for my 2 children.