4% 30 Year Mortgage

[sdrealtor]

Then maybe just maybe you will finally be able to get them to take your call

[sdrealtor]

Just ran into my favorite lender over coffee. Here is latest, at least while we were having coffee as things are moving around quickly (up and down through out the day). Just some data points here as they are likely different by the time you read this.

Conventional 30 yr 4.5%
Jumbo 30 yr (portfolio loan) 4.125%
10/1 arm 3.625%

[Coronita]

[quote=sdrealtor]Just ran into my favorite lender over coffee. Here is latest, at least while we were having coffee as things are moving around quickly (up and down through out the day). Just some data points here as they are likely different by the time you read this.

Conventional 30 yr 4.5%
Jumbo 30 yr (portfolio loan) 4.125%
10/1 arm 3.625%[/quote]

Interesting. Why are jumbos lower than conventional. I think for many purchases out here, especially MM, that would be Jumbo.

[sdrealtor]

I believe it has to do with Fannie and Freddie Mac guidelines that keep them a little higher. Lenders doing portfolio (loans held in a portfolio and not sold off to a government intermediary ) jumbo loans are a little lower.

[scaredyclassic]

I paid .5 perc more for a jumbo 10 years ago. We still joke about how fucked we felt we were for having a jumbo loan. My wife was so happy when we refined out of a jumb.

Don’t like the word jumbo attached to a debt. Why not humongous? Gargantuan? Gifuckinormous? Couldn’t tptb just go with regular and large?

[The-Shoveler]

XXL

[trex]

Plus size!

[scaredyclassic]

Megadebt. Band name, potential copyright infringement of megadeath

[Anonymous]

30 year fixed over 5% today according to Mortgage News Daily.

[sdrealtor]

Hooray!! Now what?

[Anonymous]

For years interest rates near zero created the current housing and asset bubble. Now with interest rates rising, rapidly, it’s going to crush that bubble.
You can’t seriously argue that interest rates don’t matter.

[XBoxBoy]

[quote=deadzone]30 year fixed over 5% today according to Mortgage News Daily.[/quote]

When the pandemic first hit I thought, “Boy, that will clobber the housing market.” After all, the economy was likely to go into recession, and people would become cautious. No way people would start buying houses like crazy. Of course, I was about as wrong as I could be.

A year ago, when interest rates started rising, I thought, “Boy, if interest rates get to 5%, that will cause the housing market to slam on the brakes. People won’t be able to afford these crazy prices with 5% loans.” Yet here we are with a housing market that is still rocking. Inventory in the area I watch (La Jolla) has dropped in the last couple of weeks from its already incredibly low level. So it seems I was wrong about 5% interest rates slowing the market.

Now I don’t know what to think. It seems hard to imagine that the pace of price increases will continue. But I’ve thought that for a long time and prices just keep going up at an astounding rate. Inflation will help justify some of the increases, but until inventory increases a lot I doubt we see price drops. Then again, I’ve been wrong before, maybe I am again.

[sdrealtor]

People want to buy houses and there are enough sufficiently motivated to do so around here to at least keep things close to where they are for the foreseeable future. There are plenty of adjustable loan products that were unnecessary with rates at 3 and lower. Those products will come back into mainstream favor just you wait. Just you wait

[Anonymous]

[quote=XBoxBoy][quote=deadzone]30 year fixed over 5% today according to Mortgage News Daily.[/quote]

When the pandemic first hit I thought, “Boy, that will clobber the housing market.” After all, the economy was likely to go into recession, and people would become cautious. No way people would start buying houses like crazy. Of course, I was about as wrong as I could be.

A year ago, when interest rates started rising, I thought, “Boy, if interest rates get to 5%, that will cause the housing market to slam on the brakes. People won’t be able to afford these crazy prices with 5% loans.” Yet here we are with a housing market that is still rocking. Inventory in the area I watch (La Jolla) has dropped in the last couple of weeks from its already incredibly low level. So it seems I was wrong about 5% interest rates slowing the market.

Now I don’t know what to think. It seems hard to imagine that the pace of price increases will continue. But I’ve thought that for a long time and prices just keep going up at an astounding rate. Inflation will help justify some of the increases, but until inventory increases a lot I doubt we see price drops. Then again, I’ve been wrong before, maybe I am again.[/quote]

Prices went up during Covid primarily because the Fed printed over 4 trillion dollars and doubled their balance sheet in less than 2 years. If the Fed follows through with their threats to tighten, prices have nowhere to go but down.

[scaredyclassic]

Animal spirits …

[Author]

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