Weren’t we told just a month ago that rates would be falling? Instead, the credit unions I’m following have raised rates by about 0.75 points in the last four weeks.
Nobody can predict rates perfectly. I was lucky to lock in a low rate before things went up. If you’re happy with a rate, go ahead and lock it. Timing the market is risky.
Ari said:
Nobody can predict rates perfectly. I was lucky to lock in a low rate before things went up. If you’re happy with a rate, go ahead and lock it. Timing the market is risky.
What were the terms on your rate—like the loan type and size?
@Haven
I’m at 5.875% on a 30-year, with 10% down and no PMI at a credit union in NC. Closing on Monday.
Jonah said:
@Haven
I’m at 5.875% on a 30-year, with 10% down and no PMI at a credit union in NC. Closing on Monday.
Any points or origination fees?
Jonah said:
@Haven
I’m at 5.875% on a 30-year, with 10% down and no PMI at a credit union in NC. Closing on Monday.
Any points or origination fees?
No points, just a $2500 origination fee. Rates went up to 6.25% on 11/1, but I locked in at 5.875% on 10/18.
Ari said:
Nobody can predict rates perfectly. I was lucky to lock in a low rate before things went up. If you’re happy with a rate, go ahead and lock it. Timing the market is risky.
Could you share the terms and lender name if possible? Thanks!
I’ve been in mortgages for over 20 years, and honestly, no one knows what rates will be even a month out. Don’t count on future rate drops. Focus on what’s available now and lock in if it’s right for you.
I thought the same as you. It seems mortgage rates follow the 10-year Treasury yield.
Hayes said:
I thought the same as you. It seems mortgage rates follow the 10-year Treasury yield.
The 10-year Treasury yield reflects expectations for inflation and future interest rates, which can change with economic policies.
@Perry
Let’s hope we avoid any policies that could drive inflation up again.
Adley said:
@Perry
Let’s hope we avoid any policies that could drive inflation up again.
Raising rates is meant to control inflation, so it’s all part of the strategy.
Adley said:
@Perry
Let’s hope we avoid any policies that could drive inflation up again.
Are you blaming a past administration for all this?
Adley said:
@Perry
Let’s hope we avoid any policies that could drive inflation up again.
Are you blaming a past administration for all this?
Policies can definitely have long-term effects. Remember all the precautions we were taking during the pandemic?
@Colby
True, but those decisions were influenced by advisors, not just one person.
The Fed rate dropped, but that doesn’t directly affect mortgage-backed securities.
Wren said:
The Fed rate dropped, but that doesn’t directly affect mortgage-backed securities.
I’d heard mortgage rates would fall. Now, I’m hearing they might dip slightly in January 2025, but who knows?
@Isle
I totally get where you’re coming from. Articles from August/September were suggesting rates would keep dropping through 2024 and 2025. But after the Fed’s recent move, it seems opinions shifted to say those cuts were already priced in. It’s frustrating. We locked a rate just before things went up and avoided even higher costs. If rates drop, I’ll consider refinancing. But yeah, all the predictions can be confusing.
@Isle
If you heard that rates would steadily drop, they probably left out that short-term fluctuations are common even if the general trend is down.
A month ago, rates were falling. Now, they’re not. That’s just how mortgage rates are.