I think the 60 year low of interest rates are over

J

John@Outfront

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Its all up hill from now,  i just refi'd but shortening my 30 year loan to a 15 year to take advantage of having 8 less years of mortgage payments.  it closes this Friday and was able to lock in a 2.875 rate from 3 weeks ago, my broker tells me today (3 weeks later) the same loan is now at 4+% and 30 year loans are mid 5%'s.  this will be the beginning of the housing crash in my opinion or at least a reasonable adjustment down.  

Just looked at Zillow and they showed the most insane 30 day increase on my property--unbelievable actually.  it can not keep doing this

i still remember when i bought my first home in 86 and i think the rate was near8% so they are still great at the moment just not "as great"

 
Totally agree.

Unfortunately, prices and interest rates are going to price tons of folks out of being able to even purchase a home.

Lots of renters for the foreseeable future.

 
Housing prices will come down as interest rates go up.

Of course, it will depend on just how high the rates go.

We should be at the top of the pricing right now.

 
holy smokes, thanks,  now you can edit your quote!!

 
John@Outfront said:
holy smokes, thanks,  now you can edit your quote!!
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This is a safe place John... :biggrin:

Wrench in the works on prices coming down: it's still profitable to purchase houses to rent them out.  Maybe not as a sole proprietor because of risk, but REITs are still returning very well even with current prices.

 
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Bought my first home in like 99 or so, had an adjustable rate of 8.5% (bad credit in those days... or maybe it was stated income). OP is right. Interest rates will go up to 7-10% for a 30 year fixed IMO in the next 12-24 months. 

Have a friend in San Clemente who CRUSHES is on loans. Fortunately, he's 97% purchases and refi's.. the refi crowd will soon be laid off en' masse. Sorry, but the loan guys have been riding the easy money train for way too long. Fed MUST raise rates to stop this crazy inflation.

My $.02.

abc

 
The interest rates will get into the 6.5% range.   Something has to give to slow the out of control housing prices.  I don't think we will see the crazy housing crash like we did in 2008.  

 
60yr? in the 80's it got to as high as 16%

I bought my first house in 1999 at 8.5%

Now 3rd house I'm at 3.8% on a 20yr

 
I refied at 2.25% on a 30 fixed.  Boom...done.  We will never see that again in my lifetime.

 
Refied to 2.875 on a 30 and agree, will never see that again. The frustrating thing is we want to move to Utah in 3-4 years. It may not be any cheaper and the smart money move will be to stay in this crappy state and not lose that rate.

 
Dune-Track-N said:
60yr? in the 80's it got to as high as 16%

I bought my first house in 1999 at 8.5%

Now 3rd house I'm at 3.8% on a 20yr
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well i meant it was never lower at any time then the last 60 "during the last 60 years"

 
We refinanced a couple times during the pandemic at zero cost and no points.

We are now down to 2.128% on a 15 year.

We were almost 5% 7 years ago when we bought our place. I'm still paying that same payment so I'm hoping I'll be done in 13 years or less if I can swing a few extra payments in a year.

 
Been looking out of state.  It's nuts everywhere.

Buddy in Montana bought his house 3 years ago for 350k.  Appraised this week for 730k.

 
For every 1% increase in interest rate you lose 10% of your buying power. (Roughly)

I see people already dropping out of the house hunting because they don't qualify anymore. 

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My wife and I are young, we bought our house in 2016 and locked in our rate at 3.5% i think which was great at the time. Even then we were still in a bidding war for our house and i think we paid 15k over asking. There were multiple cash offers on our house but the realtor really liked us and swayed the buyers into selling to us. 

Fastforward to today and the house across the street from me just sold in one day for an insane price and it was a cash deal. Based off that sale my house has almost doubled in price from what I paid in 2016. Mind you we have remodeled so that added alot of value

My question to everyone is will the craziness and prices really come down even with the interest rate rising? Talking to friends, realtors, and watching the market it seems every house has a cash offer on it, So what will the interest rate matter if its a cash buy? I understand it might take some of the bidders out who can't afford the mortgage with a higher rate but do you think all the cash buyers will stop buying?

I have friends and family who are sitting on cash waiting for something to drop so they can start picking up properties at a reasonable price, commercial and residential

 
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