4% 30 Year Mortgage

[Anonymous]

[quote=XBoxBoy][quote=JPJones][quote=deadzone][quote=spdrun]Average 30-yr was below 3% about 6 months ago. Now, it’s what, 4.25%? And the hikes are just beginning.[/quote]

Actually 4.68% today. But who’s counting? Apparently interest rates don’t impact the local housing market according to the “Professionals” on this board.[/quote]

What are your credentials? What is your source on that 4.68% number?[/quote]

I suspect that deadzone is quoting the rate listed on Mortgage News Daily. https://www.mortgagenewsdaily.com/

3/23/2020 the stated rate is 4.68%. Keep in mind that is an average for loans available yesterday. When sdrealtor quotes that a client just closed at such and such, that loan was started a month or more ago when rates were lower. And with points you can always lower your rate.

From my experience Mortgage news daily is well worth following if you want to see what rates are doing. The question/issue isn’t what rates are today, the question is how will these increased rates impact real estate. So far inventory numbers tell me the answer is not so much. Of course, maybe it’s too soon to tell.[/quote]

That is correct. This is an average and mortgage news daily is a trusted source often quoted by CNBC and other financial media. Of course individual loans may vary, but all loans are going up significantly in rate based on just a few months ago. And it is only going to get worse. Fed is not only raising fed funds rate this year, they are also purchasing less MBS. With less Fed involvement, there will be a lot less interest in purchasing MBS and rates will go up due to increased risk. The market has been artificially propped up by the Fed for 12 years. The Fed fueled this housing boom and with them reversing course, you can’t logically believe it won’t have severe negative consequences to housing prices.

[sdrealtor]

[quote=XBoxBoy][quote=JPJones][quote=deadzone][quote=spdrun]Average 30-yr was below 3% about 6 months ago. Now, it’s what, 4.25%? And the hikes are just beginning.[/quote]

Actually 4.68% today. But who’s counting? Apparently interest rates don’t impact the local housing market according to the “Professionals” on this board.[/quote]

What are your credentials? What is your source on that 4.68% number?[/quote]

I suspect that deadzone is quoting the rate listed on Mortgage News Daily. https://www.mortgagenewsdaily.com/

3/23/2020 the stated rate is 4.68%. Keep in mind that is an average for loans available yesterday. When sdrealtor quotes that a client just closed at such and such, that loan was started a month or more ago when rates were lower. And with points you can always lower your rate.

From my experience Mortgage news daily is well worth following if you want to see what rates are doing. The question/issue isn’t what rates are today, the question is how will these increased rates impact real estate. So far inventory numbers tell me the answer is not so much. Of course, maybe it’s too soon to tell.[/quote]

You are correct and of course I knew that and was just working over deadzone because it’s yet another example of how he does not understand in the slightest how real estate works. For that matter no one buys an average house or takes out an average mortgage. Average rates quoted on a site like that are for the country not here. The quality of borrower here is generally substantially higher than most places. The loans are also much bigger While still in the conventional range so the rates /fees are lower.

[Coronita]

San Diego County:

Conforming loans – up to $647,200.
Super Conforming loans – between $647,201 and $879,750.
Jumbo loans – Over $879,750

For the rest of CA:

[quote]
Some of the high-cost areas of California include:

Alameda – $970,800
Contra Costa – $970,800
El Dorado – $675,050
Los Angeles – $970,800
Marin – $970,800
Monterey – $854,450
Napa – $897,000
Orange – $970,800
Placer – $675,050
Sacramento – $675,050
San Benito – $970,800
San Diego – $879,750
San Francisco – $970,800
San Luis Obispo – $805,000
San Mateo – $970,800
Santa Barbara – $783,150
Santa Clara – $970,800
Santa Cruz – $970,800
Solano – $647,200
Sonoma – $764,750
Ventura – $851,000
Yolo – $675,050
[/quote]

2023 California Conforming and FHA County Loan Limits

Riverside is $647k

[scaredyclassic]

Someone somewhere
Leads an average life
In the average house
With the average wife.

Drinks an average beer
Eats average food
Watches average shows
With his average brood.

But there’s only 1 of him.

Compare:

The Lake Wobegon effect
The characterization that “all the women are strong, all the men are good-looking, and all the children are above average” has been used to describe a real and pervasive human tendency to overestimate one’s achievements and capabilities in relation to others.

[Coronita]

[quote=scaredyclassic]Someone somewhere
Leads an average life
In the average house
With the average wife.

Drinks an average beer
Eats average food
Watches average shows
With his average brood.

But there’s only 1 of him.[/quote]

Not me man.

I live in a way below average home in 92130 in the “Slums of Carmel Valley”

I can no longer afford Beverly Mira Mesa in today’s prices. Those pesky tech workers with much deeper pockets.

[scaredyclassic]

I am the mean.
You are the median.
Let us average out our differences.
A new mode.

[sdrealtor]

[quote=Coronita][quote=scaredyclassic]Someone somewhere
Leads an average life
In the average house
With the average wife.

Drinks an average beer
Eats average food
Watches average shows
With his average brood.

But there’s only 1 of him.[/quote]

Not me man.

I live in a way below average home in 92130 in the “Slums of Carmel Valley”

I can no longer afford Beverly Mira Mesa in today’s prices. Those pesky tech workers with much deeper pockets.[/quote]

I’d be happy with an average tee time in the next few days. All these average WFH guys that moved here are making it tougher than ever to get one

[sdrealtor]

And while National is important in the end all real estate is local. Driven by supply which is as low as anywhere here and demand which is as high as anywhere. You can follow inventory trends nationally on calculated risk among others who break it down by market. We are in the tightest market in the country.

So someday when things turn south as they inevitably will nationally and deadzone will try to claim victory from his rented hovel we will chuckle from our comfortable homes knowing we are both safely ensconced exactly where we’ve been all along. Just watching a market that is not reflective of the National market

[Coronita]

[quote=scaredyclassic]I am the mean.
You are the median.
Let us average out our differences.
A new mode.[/quote]

Real estate cost in San Diego is so brutal, I’m living 2 standard deviations above my means.

[Anonymous]

[quote=sdrealtor]
You are correct and of course I knew that and was just working over deadzone because it’s yet another example of how he does not understand in the slightest how real estate works. For that matter no one buys an average house or takes out an average mortgage. Average rates quoted on a site like that are for the country not here. The quality of borrower here is generally substantially higher than most places. The loans are also much bigger While still in the conventional range so the rates /fees are lower.[/quote]

Ok got it, so interest rates aren’t going up in San Diego?

[an]

[quote=deadzone][quote=sdrealtor]
You are correct and of course I knew that and was just working over deadzone because it’s yet another example of how he does not understand in the slightest how real estate works. For that matter no one buys an average house or takes out an average mortgage. Average rates quoted on a site like that are for the country not here. The quality of borrower here is generally substantially higher than most places. The loans are also much bigger While still in the conventional range so the rates /fees are lower.[/quote]

Ok got it, so interest rates aren’t going up in San Diego?[/quote]
Reading comprehension is tough

[Anonymous]

[quote=an][quote=deadzone][quote=sdrealtor]
You are correct and of course I knew that and was just working over deadzone because it’s yet another example of how he does not understand in the slightest how real estate works. For that matter no one buys an average house or takes out an average mortgage. Average rates quoted on a site like that are for the country not here. The quality of borrower here is generally substantially higher than most places. The loans are also much bigger While still in the conventional range so the rates /fees are lower.[/quote]

Ok got it, so interest rates aren’t going up in San Diego?[/quote]
Reading comprehension is tough[/quote]

For you apparently. Like SDR perhaps math isn’t your strong suit. Do you also dispute that interest rates are going up? Who cares if SD rates are slightly lower or higher than the national average, that is irrelevant. They are going up everywhere at roughly the same rate. SDR thinks SD is isolated in some type of a utopian economic bubble. Sorry it doesn’t work that way. Everything is connected to the Fed.

[an]

[quote=deadzone]For you apparently. Like SDR perhaps math isn’t your strong suit. Do you also dispute that interest rates are going up? Who cares if SD rates are slightly lower or higher than the national average, that is irrelevant. They are going up everywhere at roughly the same rate. SDR thinks SD is isolated in some type of a utopian economic bubble. Sorry it doesn’t work that way. Everything is connected to the Fed.[/quote]
Nope, just you. No one ever said rates in San Diego is lower. You obviously have no idea what goes into getting a particular rate.

[sdrealtor]

[quote=an][quote=deadzone][quote=sdrealtor]
You are correct and of course I knew that and was just working over deadzone because it’s yet another example of how he does not understand in the slightest how real estate works. For that matter no one buys an average house or takes out an average mortgage. Average rates quoted on a site like that are for the country not here. The quality of borrower here is generally substantially higher than most places. The loans are also much bigger While still in the conventional range so the rates /fees are lower.[/quote]

Ok got it, so interest rates aren’t going up in San Diego?[/quote]
Reading comprehension is tough[/quote]

He lives in a dark hole unaware all real estate is local. Some places it was flat during the bubble while others doubled. Some places are up a little during the pandemic expansion some are up a lot. No place is average except scardey’s kitchen but even that is underconstruction and being remodeled! Gooal!

[evolusd]

Selling my mom’s townhome up in LA. Buyer’s loan has a rate of 4.875%. Ouch.

[Author]

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