mortgage rates?

[Yellowfin123]

i know we have a few economist on this site, i need to get 2 more kids into homes in 2022 , i did 1 in 2020 and he's locked into a 3.4 rate fixed..

inventory is low right now where i'm looking but it is january so i'm being patient but getting a little edgy

at the moment i could get them into loans for 3.6 fixed..

what is everybody's predictions for rates hikes in 2022?? the feds are talking about huddling up.

3rd or 4th quarter hikes?? none? big hike in 2023??

what say you?

p.s. i really don't mean for this to turn into red vs blue

[cyber16]

if you can lock in now, I would consider doing it IF local home inventory accommodates a purchase earlier vs later.
Low home inventories are only going to get worse in the short term and bidding wars will continue due to those buyers trying to move before these future rates.

[Hot Runr Guy]

For those of us who had 18% mortgages on our first homes, anything at 5% or under is "free" money. Winter is usually the cheapest time to buy, nobody wants to move their kids to different schools mid-year. Even if rates rise a bit come summer, I would expect that higher prices would offset the interest rate.

HRG

[Juls]

Originally Posted by Yellowfin123

p.s. i really don't mean for this to turn into red vs blue

It's a topic, that can certainly be talked about without the political side of it getting involved.

Those that can't write a post without politics in it, will have their posts removed. (site rule)

Good luck with their house hunting Yellowfin! Go Dad! lol

The first house, is always the most exciting for a young person...at least it was for me.

It's nice that you're helping them navigate all of that. It can get confusing at times.

[vteye3]

Yep interest rates are going up but many are expecting home prices to tumble in the next
economic downturn. 2of my 3 own there own homes and third one is couple years away and were able to buy at reasonable valuations.
I don't see a giant advantage buying now just to lock in low rates "if" values have gone crazy?

[Mojo-NC]

I for one would not purchase a home now. I've been watching pretty closely for the past year plus and the increases in the price of homes have been outrageous. I don't think a discounted point or two in interest rate will be enough to make up for the currently inflated prices. If you can get a good deal combined with the lower rates, but all means take advantage of it.

It wasn't that long ago when folks bought homes that they couldn't sell later because they owed more than the homes were worth after the bubble burst. I personally plan to wait until the prices come back down to realistic levels and maybe then I'll pull the trigger.

[RMBin303]

Everything I have read is to expect multiple rate hikes this year. I have a new vehicle on order, and am hoping it gets here before rates really start to rise. If I were you, I would lock in as soon as you can. The cost of $ is almost certain to go up.

[Baseline]

Any lock will have a time limit. What is more important to you getting a house that is sound and meets the needs of the buyer or getting a good interest rate. Both would be preferable, but it is usually worth paying a little more to get the house you want.

What price point are you looking at? There is a lot of difference paying a point more for a home priced in the low six figures as opposed to one priced i n the high six figures or higher

The FED has already signaled they will be raising the prime, but that doesn't always mean an automatic rise in mortgage rates as demand for the money plays a big role. Currently there is a shortage of over a million homes in the country so depending on where you are don't look for prices to come down or available units to increase which will keep up the pressure on prices.

[Yellowfin123]

i'm pretty good at beating "over valuation" thats not a problem, the biggest pain is for 1 of them i have a target area of about 1 x3 mile area, maybe 1000 homes in that area, and today theres not 1 home for sale... rates are everything and rackin my brain on how long before i need to expand the target area and of course they expect me to get them the same deal as i did the 2020 house.. like hrg said its true dec -feb because of school alot of people wont mess with listing a house till march-april decisions decisions

if fed raise rates , what we talkin 2/10ths , half point?

[muskyed]

Don't think you are going to see much if any drop in home prices soon. Reason being, there is few homes for sale, and quite honestly borrowing is cheap, even if it goes up. Rates have been so unrealistically low for such a long time that sooner or later it will have to change. Traditional rates were in the 7% range for most ever, although I remember them being in the 13% range with excellent credit for awhile, and people still bought homes. If present rates were to go up 1/2-1%, it's no big deal, still cheap money. Don't expect a big correction in home pricing till the supply increases as a minor increase in borrowing rates will not move home prices without an increase in home supply.