Mortgage rates on the rise

As if the streess of twins ins't enough, my DH and I just , luckily, LOCKED IN at 5 7/8. The mortagage rates are going up because of the Federal Government $400 tax benefit to each child per houshold. Like $400.00 is going to make a difference in this real estate market.

So if you are in the process of buying right now, make sure you are LOCKED IN!!

Re: Mortgage rates on the rise

Lucky you!

I heard they were rising also but I didn't know the reason.

Re: Mortgage rates on the rise

let's just hope that the price of houses comes down now..

Re: Mortgage rates on the rise

I second that,

Re: Mortgage rates on the rise

good! I'm waiting for them to go back up, maybe then the house prices will come back down to reality and we can afford a decent house on LI

Re: Mortgage rates on the rise

gees, I hope the price of houses come down!!

Re: Mortgage rates on the rise

Actually the prices are rising because as reports of the economy getting better continue the bond market goes down. This is what drives mortgage rates. So if the economy continues to do well the rates will continue to go up. But the concern is that this will do the opposite of what the fed is trying to do with the tax returns and rate cuts so they need to be careful about the positive spin they put on the economy when they do things like that.

Re: Mortgage rates on the rise

Oh no, DH and I didnt lock in yet for our condo!

Re: Mortgage rates on the rise

My DH and I just refinanced our house b/c the rates are so low. Last year when we bought the house we locked in at 6.75 which we thought was good. Now we just got 5.25! Right before they went up again! Do it now before they go higher. You'll never see rates like this for a very long time!

Re: Mortgage rates on the rise

I hate to say it, but I don't think house prices will drop. NOt around here anyway. I think the market will absolutely stabalize, but drop - no, not really. If anything, maybe people will start accepting bids that are a little less than the asking price or even at the asking price (instead of these massive bidding wars), but I don't think people will start asking for much less on their homes...

Re: Mortgage rates on the rise

We've already seen a slight difference in house prices. A few have come down from their astronomically high prices, and they're on the market for longer, meaning that people aren't willing to jump on the first thing they see and maybe hold out for what they really want. Then those houses reduce in price. We've already seen about 4 out of 10-12 houses that have recently reduced asking prices.

What I notice most is that the houses that were most overpriced and needed a lot of work are now more reasonable. the nice ones are still going but I really think it'll improve very soon.

Think I mentioned this before, but just in case....

Look into remodifying your mortgage. It is about 1/2 the cost of refinancing and takes about half the time. You continue with your current mortgage and all that changes is the rate you lock into, which is based on the current balance of your mortgage.

Re: Think I mentioned this before, but just in case....

You can only remodify if your loan is with a bank. A lot of banks sell mortgages out. We tried, but unfortunatley, we would have to refinance.

Re: Think I mentioned this before, but just in case....

A few points on the mortgage interest rate will not effect housing prices at all. It is just not enough of an increase to do that. Housing on LI will not tank down any time soon.
It will however effect anyone who wanted to refiance so it may effect current mortgage company payrolls since there will be less work coming in. It will also stop most people from refiancing at this point.
$400 is not going to do a darn thing for our economy. Most parents will use it for school shopping or to pay a bill. It will not really invigorate the economy. So Baby Bush is an iditot, once again. because the country is in even more debt now.