30 year mortgage rate averages just broke 6%

[quickfeet]

Yikes. Average was just under 5% a little over a week ago

I don't care what opinion you have on the RE market, if people can't afford payments... it doesn't look good

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[TopHook]

Have a deal going on that started off at 6.2% but he paid a little more and got it down to 5.9% then title issue came up and his lock in rate will expire while they go to probate.

 

[quickfeet]

Have a deal going on that started off at 6.2% but he paid a little more and got it down to 5.9% then title issue came up and his lock in rate will expire while they go to probate.

I assume you are a lender? Butt hole getting tight?

 

[TopHook]

I assume you are a lender? Butt hole getting tight?

No. agent. Licking my chops for forclosures.

 

[AgEngDawg]

No. agent. Licking my chops for forclosures.

What is the worse mess you seen someone leave after they have been forclosed on?

 

[BurntJ]

Yikes. Average was just under 5% a little over a week ago

I don't care what opinion you have on the RE market, if people can't afford payments... it doesn't look good

Current Mortgage Rates: Compare today’s rates | NerdWallet - NerdWallet

Compare mortgage rates when you buy a home or refinance your loan. Save money by comparing free, customized mortgage rates from NerdWallet.

www.nerdwallet.com

Huh.....I paid my (old) house off years ago and the new was paid in cash.

This is bad news for the Poors.

 

[TopHook]

What is the worse mess you seen someone leave after they have been forclosed on?

Outline of a body from blood stains in storage outside. That one struck me.
Second would be the mold from an addition. Carpet was black. I took a step on it and felt it was moist. Lifted my foot and could see original color of carpet and left immediately and that when the headache kicked in. Have not worn sandals since when going to look at them.

 

[TopHook]

Oh, the 3rd was we pulled up on this house. Granted it was in the country, but listed at $16k. 3b 2bth so I was interested. Walked in to pure blackness. Place had been burnt to the studs on the inside. My first reaction was

That was the mesiest.

 

[BLatta12]

Does a certain rate threshold flip the RE market?

 

[shiv]

Does a certain rate threshold flip the RE market?

As far as killing home prices? Absolutely

 

[shiv]

Does a certain rate threshold flip the RE market?

Before insurance and taxes here:

At 3% 30 year on a $500k loan is $2100/month.

At 6% the payment would be $3000/month

Once you pass $2500/month payments you really starting weeding out buyers

Unless your not poor like @BurntJ and can drop that cash money

 

[BurntJ]

Oh, the 3rd was we pulled up on this house. Granted it was in the country, but listed at $16k. 3b 2bth so I was interested. Walked in to pure blackness. Place had been burnt to the studs on the inside. My first reaction was
View attachment 110192
That was the mesiest.

Bro…. Don’t bring me into yore racist rant. When @Rube Reaper realizes you have use:
Black
Color
Blackness
Hell burnt is probably racist too now

 

[shiv]

Does a certain rate threshold flip the RE market?

Oh yeah and I guess I didn’t answer this question, but we are at the rate right now. I think once we passed 5% the landscape is rapidly changing

 

[SmokeHouse423]

Those developers who are just now getting started on projects could be in deep shit.

 

[RHT 3]

Those developers who are just now getting started on projects could be in deep shit.

Nah. They just gotta lower their prices and only get a 40% profit margin instead of the usual 60% they've been making.

 

[Rube Reaper]

Bro…. Don’t bring me into yore racist rant. When @Rube Reaper realizes you have use:
Black
Color
Blackness
Hell burnt is probably racist too now

You notice how he associates “black” with bad?

He should just say he lives and the south United States and wears a white hood.

 

[quickfeet]

 

[TopHook]

Oh yeah and I guess I didn’t answer this question, but we are at the rate right now. I think once we passed 5% the landscape is rapidly changing

Already has with buyer applying for loans.

 

[quickfeet]

Already has with buyer applying for loans.

Meaning only cash buyers will stay in the market?

 

[TopHook]

Meaning only cash buyers will stay in the market?

Investors will start negotiating the price down now looking for deals again.

 

[ChicagoFats]

Agree - the higher intrest rates will lessen the pool of buyers. The problem, around here at least, is that the pool of buyers was vast. For every winning bid, there were 5-10 back-up offers. So, rates need to rise to weed out the pool of buyers. This should happen fairly quickly. Dont forget, when you get a mortgage you usually get a rate lock of 30-60 days so there will probably be some lag before it actually starts showing up in the market.

I do think RE will hold in there better than the stock market and other investments. People will alwyas value the roof over their head more than anything else (other than food and water).

 

[SmokeHouse423]

Nah. They just gotta lower their prices and only get a 40% profit margin instead of the usual 60% they've been making.

I don’t know. Some areas will be hit harder than others. With the price of everything and then adding in lower prices it could be tough for some. Especially those who bought property a year or so ago and just now able to develop. Those holding cost are a bitch. Most will probably be fine though outside of those that got over their skis.

 

[shiv]

Agree - the higher intrest rates will lessen the pool of buyers. The problem, around here at least, is that the pool of buyers was vast. For every winning bid, there were 5-10 back-up offers. So, rates need to rise to weed out the pool of buyers. This should happen fairly quickly. Dont forget, when you get a mortgage you usually get a rate lock of 30-60 days so there will probably be some lag before it actually starts showing up in the market.

I do think RE will hold in there better than the stock market and other investments. People will alwyas value the roof over their head more than anything else (other than food and water).

My two cents:

Real estate is going to be king in a couple years. Scarcity + soaking up all the inflation.

In the mean time the next couple years are going to be a hell of an opportunity for anyone that can scrape up some capital. I’m working on consolidating a lot of my debt so I can do my best to start building up some capital.

As horrible as it sounds, I am cash back refi’ing into a 5.5% (started the process last week) because I’ve got a heloc, business loan, and personal loan I need to wipe out. Should clean up all my variable rate debt and increase my personal monthly net by about $300.

I would really like to try and scrape together enough to at least pounce on a property or two in the next couple years. We had been shifting our plan away from residential, but looks like that’s going to be the next opening

If prices drop enough I could give a shit about interest rates as long as I can hit my cap rate.

 

[quickfeet]

I don't feel so good mortgage bros

 

[t_money86]

FED just raised another .75

 

[TFSF]

 

[quickfeet]

I don't feel so good mortgage bros

View attachment 110721

View attachment 110720

Back down more than 0.5 % since this post. Temporary?

 

[dirtytoeddawg]

Back down more than 0.5 % since this post. Temporary?

applications down, home starts down, disposable income down, competition in lending industry is bumping it down a bit imo

 

[Edgehollow]

I talked to a realtor customer Friday, and she said it's starting to slow down. Houses staying on the market longer than they were even 3 months ago. No longer getting multiple offers on properties. Several of her current pre-approvals were high 5's and low 6's. People who don't know how to live without are starting to have to learn how to live without.

As an investor, I love it. Prices and rental rates were getting insane. Now, maybe I can start picking up some deals.

 

[SandroPaling]

Yes, I've already heard that the average interest rate on a 30-year mortgage has gone up 26 basis points to 6.92%. That's a record high since April 2002. And in the last year, the 30-year mortgage has more than doubled in price - a year ago, the rate was 3.05%. Of course, this development will cause mortgage rates to increase and developers to reduce their sales rates. But I don't think that real estate prices will fall. In my opinion, the market is beginning to find an adequate ratio of prices and current demand. So I decided to try to move a little bit in this turmoil. Maybe I'll be able to make some good money someday. In any case, I will first ask my friend Mortgage Broker Luton for advice as usual.

 

[quickfeet]

Yes, I've already heard that the average interest rate on a 30-year mortgage has gone up 26 basis points to 6.92%. That's a record high since April 2002. And in the last year, the 30-year mortgage has more than doubled in price - a year ago, the rate was 3.05%. Of course, this development will cause mortgage rates to increase and developers to reduce their sales rates. But I don't think that real estate prices will fall. In my opinion, the market is beginning to find an adequate ratio of prices and current demand. So I decided to try to move a little bit in this turmoil. Maybe I'll be able to make some good money someday. In any case, I will first ask my friend Mortgage Broker Luton for advice as usual.

Mortgage Broker Luton is an absolute moron

 

[hmt5000]

Heard a story today about a guy who got foreclosed on. He built a house on the property and the original owner got it back. Dude I guess didn't think the house should be part of the loss so he hired a group of guys and had the house disassembled and moved over a single day. Not sure how big the house was and they apparently left a bunch of stuff that was damaged too bad... but that was ballsy.

 

[ChicagoFats]

Mortgage rates trending down, about 1% off the highs.

30 yr fixed mortgage averaging around 7% now.

Big CPI inflation number on Tuesday which will push rates one way or another.

 

[TopHook]

Mortgage rates trending down, about 1% off the highs.

30 yr fixed mortgage averaging around 7% now.

Big CPI inflation number on Tuesday which will push rates one way or another.

around high 3's i'll start thinking about it.