Author Topic: How high will mortgage rates climb in the next 36 months?  (Read 5872 times)

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Offline OCtoSV

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Re: How high will mortgage rates climb in the next 36 months?
« Reply #30 on: September 13, 2022, 03:32:41 PM »
And Wells goes over 6%

Product
Interest Rate
APR
Jumbo Loans– Amounts that exceed conforming loan limits
7/6-Month ARM Jumbo
4.750%
4.991%
15-Year Fixed-Rate Jumbo
4.875%
5.073%
30-Year Fixed-Rate Jumbo
5.125%
5.241%
Conforming and Government Loans
7/6-Month ARM
5.625%
5.475%
30-Year Fixed Rate
6.125%
6.294%

Rates, terms, and fees as of 9/13/2022 10:15 AM Eastern Daylight Time and subject to change without notice.
 
https://www.wellsfargo.com/mortgage/rates/

from BR:

Today's national mortgage rate trends
For today, Tuesday, September 13, 2022, the current average 30-year fixed-mortgage rate is 6.10%, rising 8 basis points compared to this time last week. If you're planning to refinance, today's average rate for a 30-year fixed refinance is 6.11%, up 10 basis points compared to this time last week. Meanwhile, today's national average 15-year fixed refinance is 5.41%, up 19 basis points over the last seven days. Whether you're buying or refinancing, Bankrate often has offers well below the national average, displaying the rate, APR (rate plus costs) and estimated monthly payment to help you compare deals and fund your home for less. With rates on the rise, it’s important to shop around for mortgage offers before committing to a loan.

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Offline Compressed-Village

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Re: How high will mortgage rates climb in the next 36 months?
« Reply #31 on: September 13, 2022, 04:03:14 PM »
Anyone hold fixed or long term adjustable rate  at or below 4% is a winner. The real asset is the notes in this environment  :) :) :).

Offline Soylent Green Is People

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Re: How high will mortgage rates climb in the next 36 months?
« Reply #32 on: September 13, 2022, 05:28:42 PM »
It's Agency paper that is hitting the skids. We'll easily hit the 7's in a matter of months, if not weeks.

As a note ARM prices AND QUALIFYING TERMS are not sources of relief here. Many lenders qualify "at the start rate ...... OR Index plus Margin, whichever is higher."

Index, Plus Margins are higher in many cases than the start rate.

2/1 rate buydowns also do not qualify at the Year 1 rate. There may be the outlier who does qualify at the year 1 rate, but not at a 49.99 AUS result. The DTI maximums on buydowns are more conservative.

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Offline qwerty

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Re: How high will mortgage rates climb in the next 36 months?
« Reply #33 on: September 13, 2022, 08:24:36 PM »
Anyone hold fixed or long term adjustable rate  at or below 4% is a winner. The real asset is the notes in this environment  :) :) :).

I’m at 1.99 for 15 years. I checked out owning and the 15 year rates are at 4.625.

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Offline USCTrojanCPA

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Re: How high will mortgage rates climb in the next 36 months?
« Reply #34 on: September 13, 2022, 09:59:54 PM »
Anyone hold fixed or long term adjustable rate  at or below 4% is a winner. The real asset is the notes in this environment  :) :) :).

Indeed, now I can't sell my Tustin Ranch home with a 2.375% 30-year fixed mortgage so I'll be contributing to keep inventory off the market.
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Offline Soylent Green Is People

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Re: How high will mortgage rates climb in the next 36 months?
« Reply #35 on: September 13, 2022, 10:56:56 PM »
An Agent I know has an RSM area listing that has a fully assumable VA loan at 3 percent. Don't know the balance, but it's likely high.

Those low rate VA and FHA assumable loans are going to be like gold to list and great for buyers!
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Offline talkirvine

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Re: How high will mortgage rates climb in the next 36 months?
« Reply #36 on: September 14, 2022, 02:27:39 PM »
An Agent I know has an RSM area listing that has a fully assumable VA loan at 3 percent. Don't know the balance, but it's likely high.

Those low rate VA and FHA assumable loans are going to be like gold to list and great for buyers!

Is that VA loan assumable to any buyers, or only to qualified buyers? Will the buyer be checked for qualification?

Offline USCTrojanCPA

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Re: How high will mortgage rates climb in the next 36 months?
« Reply #37 on: September 14, 2022, 03:06:41 PM »
An Agent I know has an RSM area listing that has a fully assumable VA loan at 3 percent. Don't know the balance, but it's likely high.

Those low rate VA and FHA assumable loans are going to be like gold to list and great for buyers!

Is that VA loan assumable to any buyers, or only to qualified buyers? Will the buyer be checked for qualification?

You have to be able to obtain a VA loan.
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Offline talkirvine

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Re: How high will mortgage rates climb in the next 36 months?
« Reply #38 on: September 14, 2022, 06:24:31 PM »
An Agent I know has an RSM area listing that has a fully assumable VA loan at 3 percent. Don't know the balance, but it's likely high.

Those low rate VA and FHA assumable loans are going to be like gold to list and great for buyers!

Is that VA loan assumable to any buyers, or only to qualified buyers? Will the buyer be checked for qualification?

Thank you.
You have to be able to obtain a VA loan.

Offline Soylent Green Is People

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Re: How high will mortgage rates climb in the next 36 months?
« Reply #39 on: September 14, 2022, 07:15:42 PM »

Property: 32072 Weeping Willow St Rancho Santa Margarita

Full view on Assumptions from Rocket.  No, you do not need to be a Veteran to assume a VA Loan.

https://www.rocketmortgage.com/learn/are-va-loans-assumable#:~:text=An%20important%20thing%20to%20know,payment%20the%20home%20seller%20had.
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Offline USCTrojanCPA

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Re: How high will mortgage rates climb in the next 36 months?
« Reply #40 on: September 14, 2022, 11:57:14 PM »

Property: 32072 Weeping Willow St Rancho Santa Margarita

Full view on Assumptions from Rocket.  No, you do not need to be a Veteran to assume a VA Loan.

https://www.rocketmortgage.com/learn/are-va-loans-assumable#:~:text=An%20important%20thing%20to%20know,payment%20the%20home%20seller%20had.

That is very interesting, I'd think that VA loans could only be held by VA eligible individuals.
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Offline OCtoSV

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Re: How high will mortgage rates climb in the next 36 months?
« Reply #42 on: September 20, 2022, 08:04:07 PM »
https://www.google.com/amp/s/www.cnbc.com/amp/2022/09/20/fed-should-hike-interest-rate-rates-150-basis-points-wells-fargo.html

Talk about being hawkish. A monster of a move.



Excellent analogy and rockin tune!

with mortgage rates all but assured to hit 9% if not 10 given historical spread to the 10 yr and the dy/dx of inflation, at what point does today's ARM holder (at close to 5%) refi into a fixed rate?

Contrary to popular opinions when I made the call Powell is feeling his Volcker moment.

Offline USCTrojanCPA

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Offline Soylent Green Is People

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Re: How high will mortgage rates climb in the next 36 months?
« Reply #44 on: September 21, 2022, 03:08:06 PM »
I see  7.125 rate/ 7.398 APR terms for a 20% down investment condo purchase - roughly 4.625 Loan Level Price Adjustments being applied (Condo/LTV/Non Owner). The final points to get that rate - about 1.75 to 2.0.

One could infer that a zero point rate would be close to 8 percent - but no MBS investor wants an 8 percent rate in their pool of mortgages because the lifespan of that loan is measured in months, not years.

Rates may stay in the 7's generally, but I believe we will see the return of points being required to obtain a rare and zero point loans becoming a rarity. Odds are in 2023 or 2024 we'll see another rate drop allowing all of these 7 percent loans will get refinanced into the 4s.
My .02c

SGIP

 

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