Fucking market... top credit score bracket...could have locked at 7.125 last week but I was like "let the bitch ride" to my lender. Really just wanted that that sweet 6.99. Had until Friday to lock.. I guess we will see if an oopsie was made
Not buying any points... hoping we see some massive corrections over the next year or so
hoping we see some massive corrections over the next year or so
Yeah, I was hoping that a year and a half ago, too.
The only correction there’s gonna be is a correction of anyone’s possible hopeful outlook
I’m already there buddy
Same
Im close to just saying fuck it and buying a house but also job security ain’t great and I would hate to be stuck with mortgage on a house I don’t even love
2% mortgage rates were the anomaly. This is the correction.
7.5% August ‘23 closing checking in here
Closed at 6.375% July ‘23. It’s all luck.
6.125 last day of January 2024
7.6% closed yesterday RD
yeah, what happened to the cuts we were supposed to see this year? sigh
Don’t count on one broker to shop around. Use multiple brokers to shop for your best rate and fees.
Which seems fucked up because they should be a broker's one job but the Property Industry is ripe with conflicts of interest.
That isn’t fucked up at all. Different brokers have access to different loans. Would you really expect one broker to have access to every single possible loan?
You should read up on how many "independent" brokers send 99% of their loans tounited wholesale mortgage (the largest wholesale mortgage company) and why
There’s usually no devious reason as to why brokers send the majority of loans to UWM. Pricing can be slightly off from other lenders but chasing the lowest rate is usually not advisable as you’ll end up with a shit lender that can’t close your loan on time. If you are a clean, well qualified buyer than sure it might make sense for the broker to look elsewhere, but the pricing difference isn’t going to be drastically different. Really the bigger factor is how much comp your broker is charging.
Brokers don't all have access to the same loans or underwriters.
Our broker wasn’t honest about the fees upfront.. very frustrating as now the rates are much higher and we’ve already signed the loan paperwork. Wish we could back out and go with someone else, but rates are worse so I guess we’ll have to wait
Everyone commenting on different rates they got, it doesnt matter. Your loan amount, type of property, loan to value, all play a role in this pricing as well. And not to mention everyone is talking about what they got BEFORE the 10year bond yield just jumped from 4.4 to over 4.6 in two days, yes you burned yourself sadly by waiting no matter who you went with because the market moved against you. The other side of the coin being, it could keep moving in this direction so at least you took the stress of the unknown out.
Thanks for that. Is there a good resource you can recommend to educate my self on everything that goes into how a rate is generated.
Investopia has a fairly layman's terms article - https://www.investopedia.com/loan-level-price-adjustment-llpa-definition-7498880 and if you really want to dig in, you can find it on the Fannie Mae selling guides called the "LLPA Matrix"
That’s crazy that the fee is increased for people who have higher credit scores or higher down payment $. Why didn’t they just lower the fee for lower credit scored individuals and leave the fee price the same for those with higher scores?
if you look around you will see
10 Year Yield and the Spread
so, since you will want to refi hawk the 10 Year and wait…eventually the Spread will return to the 1.5-1.7% rate above the 10 Year Yield
https://www.mortgageresearch.com/articles/10-year-treasury-30-year-mortgage-rate-spread/
Curious. Why is the spread so large and what will bring it back down?
to put it simply, the more fear and uncertainty the bigger the spread
That makes tons of sense. Once things are more clear on inflation and its direction we can see that spread fall. Just gotta get there now.
fingers crossed
Did you shop around?
How do you shop around? Do you call credit unions locally or banks online and get an estimate? Worry about my credit being hit due to constant inquiries. My mortgage broker encouraged me to shop around if I want but to make sure I don’t do it more than 2 times or so to avoid repeat hard inquiries?
Once you inquire about a loan, you have like 2 weeks to shop around without any hit to your credit score for the hard credit check outside of the first check.
45 days from initial hard pull
Depends on the FICO formula version the lender uses. Older formulae unfortunately have a 2 week window.
https://www.myfico.com/credit-education/blog/rate-shop
We recently (exactly one month ago was closing) purchased our first home and I shopped around a lot for rates. Created a spreadsheet and called up every possible bank/credit union that provides a physician loan (as we wanted to go with that option). 80% of them provided their rates over a phone call without a hard inquiry, there were just a few who didn’t budge so I ignored.
From the highest to the lowest rate, what was the difference between the two?
Around 1.5% was the difference between the fixed highest and lowest rates, variable ARM loans were a bit lower but we did not want to pursue that option as well as no points.
I looked online. Bankrate and Nerdwallet compile rates from local lenders. Check every day as they get updated often.
Dude your mortgage broker should only need to pull your score once and then shop around FOR YOU! Their job is to know which lenders would take you on as a client.
I got a rate from a rocket mortgage, wanted to go to a local credit union with better service, made the cu think I was going to rocket mortgage and they matched, saved half a point and got the better customer service
Call brokers or apply online with brokers and direct lenders.
You have a 45-day window for credit pulls.
I got a soft-pull pre-approval and shopped rates once I was under contract. Some might recommend a verified pre-approval, but it wasn’t needed for me and my market.
I locked yesterday no points at 6.99. Was supposed to be 7.125 but Lendor got it down to 6.99. Still hoping for corrections by next year
Locked it at 6.5% with better on May20th
Was 7.49% this week?
Yes, as of today. Broker said there is 2 things additionally coming out tomorrow and Friday that could move the market depending on what they say.
This time last week we were looking at 7.125
As of today my local CU gives 6.999 on 30 year and 6.899 on 20 year mortgage. A great experience doesn't mean competitive numbers, you got a little ripped with your rates.
State, property, loan type, money down etc. all impact the rate--its no guarantee they'd get better somewhere else
Rates fluctuate daily. Hindsight is 20/20 but no one can time the market perfectly. Lock when you're comfortable with the terms. If rates drop significantly, you can always refinance later.
Right, people up in arms like the lender screwed these people over but in reality the rates change like the weather.
When is it too late to compare rates? 👀
The Fed said they don’t see the rate going down so it might be a bargain in the future. My 5.99 was thought to be high this time last year.
We locked at 8.125% last December also in the top credit score bracket. It sucked because the week before and after we closed the rate was around 7% or 7.5%. We got so unlucky, but honestly we kept getting outbid on all of our offers and was just happy to get an offer accepted on a house we actually liked. I hope rates will drop in the 6s or so in the next couple of years.
Wow! We managed to get 6.375 in December too, with only good credit.
if you can afford it then just suck it up and take the 7.49% and then refi again once it lowers at least 1 pt.
I closed @ 7.25% in 09/2023 and just refi'd in March at 6.25% with no points and closed in April. Was happy to save over $400 per month. Hopefully rates go down with the next 12 months for ya.
How did you know when it was time to refi? Did you just keep calling lenders for their rates? Or did you just have an application open indefinitely until you were ready to move on it?
I had a family friend who is a mortgage broker. I didn't use her for the my initial purchase. I just told her I had 7.25 and put me on her contact list if rates ever drop at least 1 pt. When it did she emailed me telling me the rate and if I wanted to refi, complete the app online from her.
Also, I was check rate everyone other week
Ah cool. I check rates online but it’s the as low as. So I don’t know what it really is. And I’m not going to apply and have my credit pulled a bunch. I’m on a 5 year ARM in the first year so tons of time but I want out of it asap. However not taking a rate lower than 5.5%
I'm curious what your refi costs were?
It was $4282.
They did give an option of "zero" closing cost but then they would've just added the 4282 onto the loan amount.
Thanks! That's a great deal
I locked yesterday at 6.875%
Could have been 6.6% if we had locked in last week.
If they hit me with 7.49% that would give me reason to pause and at least search for more options.
7.49% is still better than the rates coming in the short term future.
We’ll be sitting at 6-7% looking like the lucky people if the 9-10% rates come around.
Are 9-10% rates coming? I haven’t heard that at all
No one knows. But I’ll bet shit will absolutely crumble if rates hit 10%. So I’m going with no. And it’s not expected to go there either.
It seems impossible given the current economic climate but maybe. We haven’t seen rates that high in so long I don’t know what could happen if they get there again.
My parents bought their first house in 1996, and had a 13% interest rate. Their house was only $130k though; they sold it in 2003 for more than double what they bought it for.
Yeah rates basically haven’t been above 8% since 2000. We will see what happens but I can’t imagine anything good if we get back to that again after 24 years
It wouldn’t be the first time home buyers have had to deal with double digit rates. No one really knows what is going on with the economy.
The FED is trying to stamp out inflation by keeping rates high and hurting the majority of families while the stock market is hitting ATH’s making billionaires more money.
The lower/middle class are waiting for economic collapse to correct the economy for their families while the rich are making more money than ever in the current market and would try to prevent that collapse.
I don’t have faith that the economy gets better for lower/middle class in the short term.
But I’m no prophet, so like I said, no one knows what is going on.
🙏 inshallah 🙏
Just locked in at the same rate! No points. Conventional loan.
Don't hold your breath. If you can afford the mortgage for the long haul, you did good. The mortgage rate is icing on the cake. We haven't seen a positive inflation report in a couple of months. We were supposedly going to get 3 rate cuts this year if inflation was trending down (announced back in Feb/March). Now, it's looking like no cuts until next year. We'll see how that goes.
And it unfortunately looks like it is still actually trending upward. I wouldn't be surprised if we don't see any cuts for years.
Rates jumped up today unfortunately.
How much are you borrowing? What’s the difference in monthly payment between 7.49% and 6.99% in your situation? $20-30?
Ours jumped 0.125% today, we were supposed to lock in on Friday but the inspection got delayed to that day, and then the mortgage loan officer was out that afternoon so we aren’t getting locked in until probably later this week
We were quoted at 6.825% a few weeks ago, 7% yesterday on the estimate, and their website now says 7.125%
Unfortunately this is the best rates in the area for what I’ve found, at least for local lenders
yeah we were at 7.125 last Thursday, 7.375 yesterday, 7.49 today. Still blows my mind to have near .5% movement in less than a week. Its the wild wild west out there
How much time do you have before closing? You might still have time to shop around for rates.
How much time does one have? I close in a week 😭
Locked in 2 weeks ago 6.7% USDA close tomorrow :)))
Congrats man! USDA is awesome
Making me feel better about our 7.25
Nearly the exact same thing happened to us last month. It was infuriating
I did a new build so had to wait. Back in April 2023 I was quoted 5% for a 30 year. Then my house wasn’t ready until December 2023 and rate jumped to 7.5% boy was I not happy.
Don’t builders usually finance you with their lender at a lower rate?
Locked a month ago at 7.125 didn't want to take the risk. I feel for you. This market is a mother fucker..
Broker here. Just locked in a client yesterday at 6.99.
It’s a hassle (so much more work and back and back with analysts), but going with a big bank helped us shave .75% off our rate compared to local lenders recommended by our agents. 20% down, no points, closed on end of January.
I had no previous relationship with this bank, and one annoying requirement was opening a new checking account and having $50k balance during closing (not required to keep balance after closing).
I only got 6.99 in November because it was employer subsidized relocation assistance. Saw a guy in here with 5.5 percent off some state-specific VA loan program.
Don't feel bad, you got a pretty good rate in this market. The only people getting better have special deals.
No buydown?
I just got prequalified at 6.375 with my credit union last week. Should I shop around? Would that hurt my credit?
you can get unlimited pulls on your credit report from lenders within 30 days of the first pull without it affectin you credit.. so yes go get a few lenders to give you quotes but do it quickly
Recently closed on my 1st home. I called at least 6 lenders, got it down to 2 with the best rates, then started to have them beat each others offers. Eventually locked at 6.375 with 1/8th of a point which is close to nothing.
How did you do that? One lender didn’t want to give me a quote sheet because she didn’t want me to use it to get another quote and come back to her to reduce. It’s weird but most brokers don’t like doing that anymore. Am I missing something?
Both brokers were reffered by my realtor and were really decent people. I don't know how it worked but they didn't actually request any proof. I would just tell him listen I really want to work with you but X is giving me Y. He would take it to management and try to beat it. I have to mention that I got a 7/6 ARM with 10% down, 6.375% rate, and no PMI. The lender I chose also offers a quick refi whenever the rate drops for 1k fee and no complex paperwork or additional closing costs. They would just drop your rate. I'm guessing the market is slowing down so they make an effort to get your business.
That’s high tbh. We were lucky to be able to lock at 6.49 for a closing end of June even though we missed on getting 6.3 which we were getting in mid May
Sorry dude. I'm locked at 8 from December, but definitely wasn't in the best credit bracket, so I guess I'll just feel ok about that for now.
I closed at 6.65% last week. I was hoping for less. But it was better than the 7.63 I locked in last year. Didn’t buy any points. Like you, I’m praying for some massive changes over the next 12mths.
I got lucky-ish, 6.625 during the previous dip right after the previous CPI report came out. Tier 1 credit score, 500k loan, FL.
Look at new build communities if possible. They often offer big incentives if you go with their preferred lender. They bought down my rate to 4.9 a month ago and locked it in. Closed a week ago. Saved me nearly 1k/month in interest.
How does that happen? No down payment? We just closed and the interest rates were:
20% down -> 7.25%
25% down -> 7.00%
30% down -> 6.875%
I paid $0 down due to gift of equity from the seller (family).
Buy a house you can easily afford and pay extra every month until you can refi.
Somehow I closed this month with a 5.25%. New build incentive.
Thas brutal. Rip
Ask if your lender offers a float down program. We paid a $500 float down fee to get a 0.5% lower interest rate which was a no brainer
If interest rates go down, inflation will skyrocket. Not just the price of houses, but the price of everything. We will easily see inflation at 15-20% if rates go back down to 2% or 3%
There’s an in between of 2-3% and where we are now. No one is asking for 3% mortgages again. Were looking for 5-6%
Some lenders in my area could give 6.5 on 15y fixed this week
Mortgage twinsies! That's what we have from October, can't wait for that decline... one day
Highly recommend Better
Locked at 6.6 last week
Buy a 5yr or 7yr ARM and refi in 18 months
Sorry. If it makes you feel better, I had put off my lock for a little bit because I was busy with other stuff and now I have a rate that is higher than what I could have gotten had I just locked right away
Honestly, with the current volatility, locking in might just be a fool's game. Why not consider alternative investments and wait for a real market correction?
Close Friday. Locked in at 6.75%, but had to buy points. Def refinance when rates are better. I damn sure will!
Yea, it sucks. We closed in December at 7.625 and were really hoping things would improve by now. Nope not yet lol. At least we are in our place. It is what it is 🤷♀️
This broker has locked their rate, but they haven't locked you. You can STILL shop and if you get a better rate, go with someone else.
Why in the world are people waiting for rates to go down. There is zero indication rates are coming down this year. Lock as soon as possible.
Change your lender. NBKC and Mutual of Omaha are doing like 7% rn
As soon as your offer was accepted you shoulda been on the phone with multiple lenders telling them "so and so offered me this lower rate what are you offering"
They always ask for proof. Also how are you doing this?
Mortgage agents are dying for your business. They want commissions. If you get a low offer somewhere bring it to the next guy and if they want your business they are gonna do everything they can to undercut that rate. Do that in a circle a few times and youll get the lowest rate possible. All you have to do is email and phone call them and youll save thousands over the life of your mortgage
Always shop around. Get a quote from one lender and show it to other lender. Have them compete with each other. This is how you get 6.25 in today’s market. Always a good idea to buy points. It’s worth it.
The average 30 year fixed loan rate last Thursday was 6.94. If you have good credit and there are no other real issues you should have been able to get a loan below that last week.
The truth is, the Fed thought inflation was going to slow down this year.. and now it seems like the best we can hope for is that it doesn’t start increasing..
I would be surprised if we see any more than 1 rate cut before the election. After that.. the response of Wall Street to the winner will be the best rate predicter
Literally did the same thing and locked today
seems the easiest way for them to fleece you is to be a known actor. I got played by a "reputable guy" that my family realtor deals with all the time, saw me coming. By the time I shopped around it was basically too late. shop around!
Very likely rates will come down substantially anytime in the next 3 years. Outside of another black swan causing a large economic contraction, the inflation has been persistent and the federal reserve doesn’t look interest in cutting rates anytime soon
Interesting I am getting 6.375 without buydowns. I'm sorry for your luck,
I just locked in recently at 7.1% also looking for a drop in the next year.
Locked in at 6.6% yesterday 👍🏼
I compared local mortgage rates by looking on bankrate's and nerdwallet's websites every day. Literally every day. I finally found a local credit union that was doing a 5.5% special. I locked that in right away. (This happened in May 2023.)
In 2000 I was at 8.125. When it fell below five, everyone was selling refinance. Then.... you probably know what happened.
Good luck. If it goes to 18+, you'll be the lucky one.
Top credit? Why use a broker? Shop around yourself. I feel like brokers are best for mid level credit where the rates really fluctuate. You should hit Wells Fargo or Chase then ask your realtor if he has a preferred mortgage guy. Run it with 2-3 companies and let then duel it out for the best rate.
Ha what I’m trying to lock at 5.875% on my ARM. Already locked at 6 just trying eek out that extra 1/8th savings. Are you borrowing from some Vegas loan sharks?
The correction was going to 7%
locked in a 6.99 with rocket about 9 days ago, could be worse, could be better. I didn't want to buy the rate down anymore
I just locked in 6.25%, im in NY
Could you tell us Who’s your mortgage lender ?
Just refi in a year or so.
I'm glad I locked in 6.5 in late March with a low 700 and ch7 bk 2 years ago after seeing the current rates.
I locked on Tuesday at 6.75% with a .25 credit I believe worth 1,500ish back in my pocket. Could have locked last week at 6.625% with no points.
Keep in mind you got a rate that’s perfectly middle of the road in historical terms. Yes, you may have missed out on unprecedented low rates, but don’t let people gaslight you into thinking you got screwed. Don’t forget that rates in the 80’s were roughy as close to 20% as we currently are to 10%
Find a lender that will float your rate down if they drop before closing.
Locked at 7.3% so don’t feel too bad buddy!! I’m here with you lol
I guess it depends on loan type, amount etc because with my 749 score I got approved for 6.6 last weeks. Closing this Friday
OMG same here! My lender told me things should get better this week and highly unlikely it would get worse 😭
Try to swap to a 3-2-1 loan. Buy the interest down 3% for 3 yrs etc. we know rates are going down so when you refinance you get your money back for the years you don’t use it.
I got 6.99 but the seller is taking so long to pay a code enforcement bill they extended closing from 20th-31st . Rate lock expired on the 28th. The lender paid 500 for extending 4 days to the 31st. They still haven't paid the bill, and closing is literally tomorrow. If they try to extend again I'll be pissed because someone needs to pay another extension and they got me f'ed up if they think it will be me.
While compared to the last few years, 7.49% is high, but historically, it is considered normal. Marry the price. Date the interest rate. Keep checking in the rates, and let the lenders compete when ready to refinance.
me and my wife 800 credit scores, 20% down, also got 7.49, it sucks but I had to go with the lender who was most reliable and close fastest so oh well we can always refi in the future.
Yes. I called a few locations yesterday to shop around and got the same 7.49 from everyone without telling them what others were quoting. Luckily in our case we are getting 850 in credit... so should cushion our increase from 7.125% we could locked at last week for several months... which is kinda cool I guess
I guess 6.6 in Feb wasn’t so bad after all. Gonna hurt to unload my 2019 3.2% once Reno is done in the new place
Check with credit unions. I see my credit union in California is offering 7.0% on a 30 year fix.
We're locked at 7.25 on Tuesday and here we were expecting 6.95 because someone else got that last Friday our agent was saying.
I managed to lock in at 6% with 1 point on a 30 year conventional 3.5 down and no PMI last week after negotiating with many different lenders and lots of back and forth
I sold mortgages back in 2020. I still remember the day people said "It was 2.25% yesterday, why is it 2.75 now? I'll wait til it drops again." Just to lock in at 5.25 a week later.
We will be awaiting everyone’s “omg what did I do “ regret posts in a few months! Joking! Grats y’all. I ain’t leaving my 4% anytime soon.
It's called refinancing 🤷♂️
You know the whole point of the interest rate hikes was to deter spending and stop inflation, right? Don’t complain about rates when you willingly chose to spend and lock yourself into a high one.
This is the truth no one wants to hear. But we just keep right spending and buying so…
6.8% here! :/
There is only 1 FICO mortgage score for each of the 3 bureaus. Depending on what that is, it can determine your rate. Then, of course, they use the middle score, which is applicable to your APR
Interest rate need to come back down to reality along with home prices I looking at a house sold 5 yeas ago for 85k now they want 300k I just can't fathom paying 3,000 a month for a house only worth 85k when everything flips and goes to crap I hold out for either prices our Interest rate to drop before I buy I have over 200k saved waiting on a house
I’m locked in at 7.5%, closing on the 20th. But for what it’s worth, I didn’t really have any options since I am using a state down payment assistance program and have to use their loan and current rate… but it literally went up from 7.375 from when my loan office requested the lock to when it was processed… not gonna make or break, but annoying lol
What’s the name of that program? Asking for a friend.
Edit: sorry I forgot that i didn’t establish what state I was in beforehand so this is a Minnesota specific program.
I’m doing the “start up” program. More info is here : https://www.mnhousing.gov/homeownership/buy-a-home---refinance.html. Let me know if you or they have specific questions.
Gahdamn. Housing is really in the shitter
But we all need shelter
It will settle at about 5.5% in 2-3 years. There will be no “massive correction” unless there’s another financial crisis that warrants it.
I locked in at 6.5 then had a float down to 6.25 because it went down so much just 30 days ago.
I just refinanced to 6.625 yesterday
Why to buy, why can’t stay on rent. And invest on equity market
6.75% in feb
I just closed and locked in at 7.25 5/28. Its rough out here.
Points aren’t worth it in the current rate environment. The forward rate curve is sharply downward-sloping and as long as you can refinance with limited closing costs (that was offered by my LO), you’ll never breakeven. Also, you should assess the “cost” of points between different lenders—while I didn’t find base rates to be meaningfully different, the cost of points varied significantly between lenders, market conditions and loan tenor. I calculate the price of points as a unitless decimal calculated as (up-front cost, in % of loan amount) / (reduction in nominal interest rate). I saw a range of 1.5 to over 3.0.
Check in with your local credit union
You should shop lenders! We sent their offers back and forth and got it down low. These are our options:
6.25% for $300 cost
6.375% with no cost or credit
6.5% with a $4,000 credit
6.625% with a $6,000 credit
6.875% with a $6,400 credit
Locked in at 6.875 early May with lender credits. Idk how it happened but I felt like I deserved it after looking for two years
We're at 6.25. It was 6 a week ago. ;(
I locked at 7.125% yesterday.
I got lucky at 6.25 back in February
6.00 Jan ‘24 (VA)
Rates are stuck here for a while fam. That’s what happens when you’re greedy. Lowest credit bracket here and closed on 7.25%. Sucks to suck
Locked 5.75% going to closed on 13 of June
Don’t you know that you have 3 days to back of the mortgage you signed?… if you signed on Friday you have time till Wednesday. Please check with your RE attorney before making any changes.
There won’t be any major corrections. “If” anything rates may get down closer to 6 and in the future 5, but don’t ever see them getting back to the 3’s again. If that were to happen prices would only rise further.
Hang in there. 30 years ago we locked in at 7.24% on a 30 year fixed. That was a great rate at the time as we were top tier borrowers. 6 years later the rate went down to 5.25% for a 15 year fixed. My payment stayed roughly the same and I was able to drop PMI. Save some cash for your future refinance
Sweet 6.99 .... cant imagine. So glad im over here with 2.75. I hope for all you latecomers that rates drop back down to sub 4.
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