For those who insist on reminding us that rates are still historically low, here’s a colorful demonstration of where we’ve been. Today’s rates are as high as we’ve seen this decade – which is all people remember! (Click to enlarge)
Jim Klinge
Klinge Realty Group
Broker-Associate, Compass
Are you looking for an experienced agent to help you buy or sell a home?
Contact Jim the Realtor!
- 682 S. Coast Hwy 101, Suite #110
Encinitas, CA 92024 - (858) 997-3801 call or text
- klingerealty@gmail.com
CA DRE #01527365, CA DRE #00873197
Every lender does rate buydowns, so if today’s 5.25% at no points isn’t good enough, any buyer or seller can pay to get a better rate.
The cost?
It’s roughly 1% of the loan amount to lower the rate by 1/4%.
Get the seller to pay 2%, and save 1/2% in rate!
Oct 29 2018, 4:22PM
Mortgage rates didn’t move today, despite a fair amount of underlying market volatility. Rates are able to weather the sorts of storms you hear about in the stock market in part due to the diminishing returns of stock market drama on the bond market. Along those same lines, the bonds that underlie mortgages specifically don’t tend to react to stocks as much as mainstream bonds like US Treasuries.
Holding steady today means that rates remain at their lowest levels in just over 2 weeks. That sounds like a good thing, but the catch is that we really haven’t moved too far from recent highs during that time, and those are the highest highs in more than 7 years.
The rest of the week keeps the volatility potential high. There are several important economic reports, culminating in Friday’s big jobs report. Earnings season remains in full swing with bigger name companies reporting toward the end of the week. Beyond that, the end and beginning of the month is typically a more active time for bond traders. All of that adds up to the risk that we could see bigger swings in rates than we have seen in recent weeks.
Loan Originator Perspective
Bonds gave back a portion of last week’s gains today, while remaining near the best levels since early October. It looks like our mini-rally may be losing steam, I’m locking loans closing within 30 days and discussing locks for those within 45 days. We COULD see some month end demand (which would help pricing) over the next few days, but I’m not banking on it. -Ted Rood, Senior Originator
In my opinion it’s a good time to lock in the recent pricing gains. Not seeing a lot of impetus right now for rates to push lower. -Timothy Baron Licensed Loan Originator, NMLS #184671
Today’s Most Prevalent Rates
30YR FIXED – 4.875-5.0% (no points)
FHA/VA – 4.5%
15 YEAR FIXED – 4.5%
5 YEAR ARMS – 4.25%-4.75% depending on the lender
http://www.mortgagenewsdaily.com/consumer_rates/882088.aspx
Not making much sense, with such a sharp rate rise, how can MSP still be increasing, I know I can’t pull an extra $2-300/mo outta my butt, what were these buyers doing last year than they think now with an even higher payment that the house still makes sense…
Buyers just get less for the money.
It keeps the pressure on. Those who are watching daily see each house get listed for more than the last one.
It is a turbo-charged merry-go-round. Grab on at your own risk.
This was five years ago. Today is 10/29/2023 and the rates are: 30 Year Fixed: 7.88%, 30 Year Jumbo: 8.01% War in Ukraine/Russia and war in the Middle East, Israel/Hamas and The Fed doing QT to fight record high inflation after a global pandemic in 2020. Let’s see what happens in the next five years!