Personally I doubt it, unfortunately. There's practically nowhere for rates to go but up and as the Fed announced, they're starting to be more optimistic about economic recovery hence looking at raising rates eventually.
We lost out on our lower rate yesterday and can't lock until tomorrow at the earliest, most likely Monday. I'm with everyone else. I understand that 5% is a historically low rate but when it was under 4% a few weeks ago it's frustrating to know you just missed out. It's several hundred dollars a month difference for us, so we aren't talking about pennies here.
<5% is still low... I am amused at all these omg my life is over at 4.5%.
My life certainly isn't over and we're still going to close, but I can't see why you think it's so odd that I'd be disappointed our sellers first rejected our best and final and then changed their mind and accepted it 2 days later after rates had jumped more than 0.5%. It's human nature to be disappointed when you were so close to paying hundreds less every month.
@iheartcosmos - I can't believe you're still in attorney review, but I hope it magically works out that rates drop just when you come out of it!
sxia - unfortunately I agree with the others that I doubt you're likely to see < 3.5% again. I hope I'm wrong about a year from now and can refinance!
I was going to post saying I'd be contrarian and that rates would either stay flat or drop a little, but then (a) karinothing beat me to it, and (b) Bernanke opened his mouth today and I think bond traders got the message.
Post by imojoebunny on Jul 11, 2013 20:24:40 GMT -5
DH didn't call me back and I wanted to talk to him before I locked, and our rate on this house went from 5.25% to 5.5 in an hour. Such is life. You do the best you can, and don't worry too much about what you can't control.
We refied in a few years and now have a better rate, but at the time, even 5.5% was good.
What year? Didn't they go higher than that at one point? How my grandparents had interest rates like that and still paid a 30 year loan back in 10 amazes me.
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It was 1975. My first house cost $27500, about the same as my current car. By the time we bought again a few years later, I think it was still 14%. It's hard to comprehend, but we did not have luxury houses compared to today.
That sounds like a great plan to me! I've never personally had an ARM, but if you can be sure you can pay it off much faster than 30 years and the allowable adjustments during your payoff time are limited, then they can be great resources.
Not directed at greengardener but at the thread in general, when we have these discussions we should also be discussing discount points, too. Our lock, for example, allowed us to choose between 4 rates from 4.375%-4.75% with varying levels of fees up to refunds at closing, so it's really the APR and not the basic rate that matters. For us, we got money back if we agreed to 4.625% and had to pay a fee if we agreed to 4.5%, so I guess that means the official rate was somewhere between those two.