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(Marketwatch)   Mortgage rates fall to a record low for the eighth time this year, making buying that new split-level refrigerator box or van condo with river views more affordable for many   (marketwatch.com) divider line
    More: Followup, Mortgage loan, mortgage rates, Mortgage industry of the United States, Mortgage, new record lows, rate mortgage, Loan, prospective home buyers  
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464 clicks; posted to Business » on 06 Aug 2020 at 3:32 PM (24 weeks ago)   |   Favorite    |   share:  Share on Twitter share via Email Share on Facebook



24 Comments     (+0 »)
 
View Voting Results: Smartest and Funniest
 
2020-08-06 2:54:54 PM  
there's about a mile long trumptown of rvs along the 33 highway in ventura. its definitely grown in the past couple months
 
2020-08-06 4:24:02 PM  
The thing is, with the way that house prices have shot up so much, a lot of people are still biting off way more than they can chew.
 
2020-08-06 4:26:48 PM  
I'm in the market to buy a house, but I have a hankering we have just begun a housing price plunge.

/My apartment rent is surprisingly super low for my area, so I'm kind of afraid/in no huge rush to leave.
 
2020-08-06 4:32:53 PM  
Wait to buy a house, they're going to get a hell of a lot cheaper lol
 
2020-08-06 4:53:17 PM  
I've lived in my suburban neighborhood for 26 years. For the first time in...ever, we have a food line at a church in the next block every week. The line of cars goes back about 1/2 a mile to pick up donated food.

The DJIA is about to go over 28,000.

New house loans are running in almost negative real interest rate territory.

And unemployment is over 10% for the long-haul it seems.

The current economy is high on the money supply
 
2020-08-06 5:51:45 PM  
Got my mortgage offer today, 30 years fixed at 3.125% with 25% down.

Article is spot on; decent housing stock is next to impossible to find at the moment. By the time the vaccine comes out and houses get cheap, rates are already going to be ratcheting back up again.
 
2020-08-06 6:07:54 PM  

flappy_penguin: there's about a mile long trumptown of rvs along the 33 highway in ventura. its definitely grown in the past couple months


Meh, it's California.
 
2020-08-06 6:13:54 PM  
Bull puckey. At least where I live house prices have some how managed to go up even higher by a good amount. 600K homes snapped up in two days. 700-800K homes snapped up in a week. Places that would qualify as a hovel selling like fresh bread. I got no idea where these buyers and their money are coming from. It's insane. It's like the stock market disconnect.
 
2020-08-06 6:18:20 PM  

Shaggy_C: Got my mortgage offer today, 30 years fixed at 3.125% with 25% down.

Article is spot on; decent housing stock is next to impossible to find at the moment. By the time the vaccine comes out and houses get cheap, rates are already going to be ratcheting back up again.


HOLY SHIAT!
 
2020-08-06 6:32:14 PM  

flemardo: Bull puckey. At least where I live house prices have some how managed to go up even higher by a good amount. 600K homes snapped up in two days. 700-800K homes snapped up in a week. Places that would qualify as a hovel selling like fresh bread. I got no idea where these buyers and their money are coming from. It's insane. It's like the stock market disconnect.


The young urban professional class is abandoning the cities. Why live in a cramped apartment for the same price as a huge McMansion in the suburbs if you don't have a to commute?
 
2020-08-06 6:32:44 PM  

jayphat: HOLY SHIAT!


Yeah. Been a slog.
 
2020-08-06 6:43:08 PM  

Shaggy_C: jayphat: HOLY SHIAT!

Yeah. Been a slog.


For every 100K, they expect you to put down 25K? That's farking unreal. Do they want the blood of your firstborn too?
 
2020-08-06 6:48:58 PM  
The price for financing a house is built into the sale price.  Although there are cash buyers, most are not.  Most people buy what they can afford in terms of monthly payments and ignore the fact that they are paying 600k for a 300k house over 30 years.

The trick is to buy in when interest rates are higher, and either sell when they go down or refinance.  You will generally come out ahead if you don't get stuck with your original rate.
 
2020-08-06 6:57:41 PM  

jayphat: Shaggy_C: Got my mortgage offer today, 30 years fixed at 3.125% with 25% down.

Article is spot on; decent housing stock is next to impossible to find at the moment. By the time the vaccine comes out and houses get cheap, rates are already going to be ratcheting back up again.

HOLY SHIAT!


Isn't standard 20% if you don't want mortgage insurance? Can't say I've heard of 25% before, maybe it's one of those hovels I read about that sell for less than 600k.
 
2020-08-06 7:01:09 PM  
Ugh, shoulda held off longer for the refi. Still, 3.25 isn't bad, and I pay a few hundred extra each month toward the principle.
 
2020-08-06 7:58:22 PM  

Izunbacol: Ugh, shoulda held off longer for the refi. Still, 3.25 isn't bad, and I pay a few hundred extra each month toward the principle.


Timing anything is hard. I closed on a  2.875 refi in June but if these keep plunging I'll start watching rates again for when it makes sense next. I'm in no rush, but the lower the rate is, the lower of a percent drop is needed to justify the transaction costs.

As it is, my 30 year has the trajectory to be paid 20 and I've got the flexibility to cut back as needed.
 
2020-08-06 8:29:57 PM  

OptimisticCynicism: Izunbacol: Ugh, shoulda held off longer for the refi. Still, 3.25 isn't bad, and I pay a few hundred extra each month toward the principle.

Timing anything is hard. I closed on a  2.875 refi in June but if these keep plunging I'll start watching rates again for when it makes sense next. I'm in no rush, but the lower the rate is, the lower of a percent drop is needed to justify the transaction costs.

As it is, my 30 year has the trajectory to be paid 20 and I've got the flexibility to cut back as needed.


this is the hard part.  I have a 5 years left of a 15-yr that is at 4%.

Even though rates kept dropping, it just never made much sense for my situation to re-fi.  Especially if it resets the clock to 10 or 15 yrs.

Looking forward to a) no house payment and b) actually making a modest profit if I ever decide to sell.
 
2020-08-06 9:11:10 PM  

OptimisticCynicism: Izunbacol: Ugh, shoulda held off longer for the refi. Still, 3.25 isn't bad, and I pay a few hundred extra each month toward the principle.

Timing anything is hard. I closed on a  2.875 refi in June but if these keep plunging I'll start watching rates again for when it makes sense next. I'm in no rush, but the lower the rate is, the lower of a percent drop is needed to justify the transaction costs.

As it is, my 30 year has the trajectory to be paid 20 and I've got the flexibility to cut back as needed.


All in all, I can't complain. Our 30 year should be paid off somewhere around Year 20.
/Assuming we stay here
//I love the house, wife is iffy about it (and the city... Er, state)
///Something something take the girl out of TX...
 
2020-08-07 12:43:16 AM  
Yes, but the house prices seem to be going up faster than the interest rate is dropping.
 
2020-08-07 12:49:41 AM  

flemardo: It's like the stock market disconnect.


You've answered your own question. During the crash of 2008, investors (domestic and foreign) and corporations rushed into buying single family homes in every major city in America. There are nearly entire neighborhoods with rental houses owned by out of state corporations.

When houses going into foreclosure, in many states they are auctioned once a month on the courthouse steps. The prices they go for are low compared to the typical price of buying a house, but a common requirement is that the buyer must pay in full on the same day as the auction. So, only parties with liquid wealth on hand can afford to participate. Frequently, the buyers are investors and corporations again.
 
2020-08-07 4:09:44 AM  

Hyjamon: OptimisticCynicism: Izunbacol: Ugh, shoulda held off longer for the refi. Still, 3.25 isn't bad, and I pay a few hundred extra each month toward the principle.

Timing anything is hard. I closed on a  2.875 refi in June but if these keep plunging I'll start watching rates again for when it makes sense next. I'm in no rush, but the lower the rate is, the lower of a percent drop is needed to justify the transaction costs.

As it is, my 30 year has the trajectory to be paid 20 and I've got the flexibility to cut back as needed.

this is the hard part.  I have a 5 years left of a 15-yr that is at 4%.

Even though rates kept dropping, it just never made much sense for my situation to re-fi.  Especially if it resets the clock to 10 or 15 yrs.

Looking forward to a) no house payment and b) actually making a modest profit if I ever decide to sell.


Well you don't actually need to reset the clock when you refi. I made multiple principal payments over a month before my first actual normal mortgage payment for my new one.

That being said 5 years at 4% and it becomes a bigger question of whether you actually save any money because of the transaction costs. It costs me 2-3k all told for the refi, and it is knocking something like 20k off my total interest on the loan. My math annualizing the gains gave me something like a 6% yearly return over the 20 years on that initial money. With bonds paying dirt right now, a 6% tax-free, risk-free return over that duration is a home run.

If your house is anywhere as inexpensive as mine, that math may look very different with so little left. It might make sense, but it really might not. Totally situation dependent.
 
2020-08-07 4:29:10 AM  

Izunbacol: OptimisticCynicism: Izunbacol: Ugh, shoulda held off longer for the refi. Still, 3.25 isn't bad, and I pay a few hundred extra each month toward the principle.

Timing anything is hard. I closed on a  2.875 refi in June but if these keep plunging I'll start watching rates again for when it makes sense next. I'm in no rush, but the lower the rate is, the lower of a percent drop is needed to justify the transaction costs.

As it is, my 30 year has the trajectory to be paid 20 and I've got the flexibility to cut back as needed.

All in all, I can't complain. Our 30 year should be paid off somewhere around Year 20.
/Assuming we stay here
//I love the house, wife is iffy about it (and the city... Er, state)
///Something something take the girl out of TX...


State may get better if the GOP ever gets around to crash and burning out of unilateral control. Both my wife and I like our house, but we would rather see snowy winters and cooler summers than the heat/humidity we have in south Texas.

Both sets of parents are in the state (well 5/6 parents), so we probably aren't going to leave it at least until they aren't around.
 
2020-08-07 8:38:34 AM  
Still not low enough to be worth the cost of refinancing.  Maybe if it drops down to 2.0 or lower.
 
2020-08-07 2:56:54 PM  

debug: Still not low enough to be worth the cost of refinancing.  Maybe if it drops down to 2.0 or lower.


One thing to keep in mind is that Fanny Mae has done a bunch of waiving the inspection requirement on refinances this year. That actually kicks down the refi cost at least a couple hundred.
 
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