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  • Falling interest rates

    Applied for pre-approval for my next house yesterday. Was quoted 3.75 for a 30 year and 3.1 for a 15 year. My realtor said predictions are for rates to be under 3% by next year. Anyone tracking? Ideas why they've gone so low in what appears to be a pretty strong economy?

  • #2
    Originally posted by riverwed070707 View Post
    Applied for pre-approval for my next house yesterday. Was quoted 3.75 for a 30 year and 3.1 for a 15 year. My realtor said predictions are for rates to be under 3% by next year. Anyone tracking? Ideas why they've gone so low in what appears to be a pretty strong economy?
    I'm tracking. Wouldn't mind a refinance from 3.875 to below 3 (and might go from 30 to 15 years, too).

    Who knows why rates are low. The 10 year damn near dropped below 2% and stayed there. That's crazy. Might as well take advantage while we can. The MM rates will start dropping back to 0% if we stay down here at a 2% 10 year.

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    • #3
      Originally posted by corn18 View Post

      I'm tracking. Wouldn't mind a refinance from 3.875 to below 3 (and might go from 30 to 15 years, too).

      Who knows why rates are low. The 10 year damn near dropped below 2% and stayed there. That's crazy. Might as well take advantage while we can. The MM rates will start dropping back to 0% if we stay down here at a 2% 10 year.
      Surprised you're financed at 30 years now. Do you pay extra on your principal? Every time I buy (happens more than I'd like to admit - I'm 33 and this will be the 5th house I've purchased) I think I'd like to do a 30 year but when I look at the difference in interest over the life of the loan it makes me queasy and I just can't do it.

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      • #4
        I did a refi on my primary residence last fall.
        Dropped from a 30 yr to a 20 yr.

        I might have to take another look if rates keep falling.
        Brian

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        • #5
          Originally posted by riverwed070707 View Post

          Surprised you're financed at 30 years now. Do you pay extra on your principal? Every time I buy (happens more than I'd like to admit - I'm 33 and this will be the 5th house I've purchased) I think I'd like to do a 30 year but when I look at the difference in interest over the life of the loan it makes me queasy and I just can't do it.
          We went with 30 when we bought in Jan of this year just to maximize all options. Should have enough to pay off the house in about 2 weeks, then we will decide what to do. If we can refi to 3% @ 15 years, we may do that and go from there.

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          • #6
            The Fed has not dropped rates for a long time. In fact, there have been several incremental increases. Why would mortgage rates be falling?
            Steve

            * Despite the high cost of living, it remains very popular.
            * Why should I pay for my daughter's education when she already knows everything?
            * There are no shortcuts to anywhere worth going.

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            • #7
              Originally posted by disneysteve View Post
              The Fed has not dropped rates for a long time. In fact, there have been several incremental increases. Why would mortgage rates be falling?
              Because the 10 year rates are falling. I think May scared people into bonds and that drove the rates down. The Fed rates do not directly impact mortgage rates as mortgage rates are longer term.

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              • #8
                Originally posted by corn18 View Post

                Because the 10 year rates are falling. I think May scared people into bonds and that drove the rates down. The Fed rates do not directly impact mortgage rates as mortgage rates are longer term.
                Gotcha. I wasn't sure what the correlation was.
                Steve

                * Despite the high cost of living, it remains very popular.
                * Why should I pay for my daughter's education when she already knows everything?
                * There are no shortcuts to anywhere worth going.

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                • #9
                  I have been watching the rates for quite a while now, and my mortgage broker happened to call today just as I was thinking of calling him. Currently I have a 30 yr fixed @ 4.625%, refinanced about a year ago after our 7 yr ARM expired and our rate was going to jump to almost 6%. At the time, it was the best we could do. Our broker offered a 20 yr fixed at 3.625%, no escrow (which I want), and $2,500 in closing costs. We plan on staying until our daughter graduates HS in 4 yrs, but then we also planned on moving long before now, which explains the ARM. I compared several big banks, bankrate, and Costco, and he seems to be very competitive so I think I'm going to do it.
                  Last edited by msomnipotent; 06-19-2019, 07:56 PM.

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                  • #10
                    Originally posted by msomnipotent View Post
                    I have been watching the rates for quite a while now, and my mortgage broker happened to call today just as I was thinking of calling him. Currently I have a 30 yr fixed @ 4.625%, refinanced about a year ago after our 7 yr ARM expired and our rate was going to jump to almost 6%. At the time, it was the best we could do. Our broker offered a 20 yr fixed at 3.625%, no escrow (which I want), and $2,500 in closing costs. We plan on staying until our daughter graduates HS in 4 yrs, but then we also planned on moving long before now, which explains the ARM. I compared several big banks, bankrate, and Costco, and he seems to be very competitive so I think I'm going to do it.
                    Check on bankrate.com. I am looking at a 15 yr, no points, 3.125% APR with $742 of closing costs. They seem to vary throughout the day, but the 10 yr just dipped below 2% again, so I would expect the mortgage rates to be very good today.

                    UPDATE:

                    10 yr fixed loan just went down to 2.875%. Yowzers!
                    Last edited by corn18; 06-20-2019, 07:25 AM.

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                    • #11
                      10 year fixed is now @ 2.75%.

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                      • #12
                        I just did a 30 year refi at 3.5/0/0
                        How can you have any pudding if you don't eat your meat?

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                        • #13
                          Originally posted by corn18 View Post
                          10 year fixed is now @ 2.75%.
                          Where are you seeing these rates? When I punch in my info I get "no loans for your specific requirement" on bankrate.com (I'd be doing 94k on 300k property with 830 credit score)
                          Gunga galunga...gunga -- gunga galunga.

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                          • #14
                            Originally posted by greenskeeper View Post

                            Where are you seeing these rates? When I punch in my info I get "no loans for your specific requirement" on bankrate.com (I'd be doing 94k on 300k property with 830 credit score)
                            It does that to me as well sometimes. Not sure what the reason is, but it is irritating. If I try again later, it spits out rates again. Weird.

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                            • #15
                              Originally posted by corn18 View Post

                              Check on bankrate.com. I am looking at a 15 yr, no points, 3.125% APR with $742 of closing costs. They seem to vary throughout the day, but the 10 yr just dipped below 2% again, so I would expect the mortgage rates to be very good today.

                              UPDATE:

                              10 yr fixed loan just went down to 2.875%. Yowzers!
                              I did check bankrate.com. They showed pretty much the same rates except I would have to pay towards points, when I could actually see rates. My local rates tend to be higher than average, as are closing costs. I'm leery of low closing costs. We refinanced years ago with one of those online only low cost companies and then had to pay separate fees for the inspection and appraisal and some other junk I don't remember, and then it wound up being even more than our broker, plus we had to do all of the work. And when it idiot appraiser valued our house against much smaller homes in the area, we had a choice of either coughing up the difference or backing out of the deal and losing all the money we had already paid. Whenever there is a problem, and there have been a few, we just let our broker handle it.

                              I really debated about going with a 15 yr or the 20 yr. The 15 yr would have been $400 per month more than the 20 year, so really over $600 more that what we pay now. We could afford it but would have to adjust expenses elsewhere and maybe dial back our savings. I would prefer to do something else with $400, especially since this isn't our forever home.

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