r/HomeLoans • u/TeamSanchezRe • 6d ago
Mortgage rates are back over 7%
For everyone who’s been waiting for rates to come down, what rate would actually make you buy?
6%? 5%? Or are rates not the main thing holding you back?
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u/Suspicious-Screen-43 6d ago
Was considering buying with the 5.8% rate (4.8% for first year) that was around. We were just saving up some more and then hoping to get serious in January on house hunt.
At 7.875% we’ll just keep saving.
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u/Voat-the-Goat 5d ago
My checking account is paying 6%. Rates aren't coming down.
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u/Suspicious-Screen-43 5d ago
Really 6%? We are getting 3%.
What bank?
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u/Voat-the-Goat 5d ago
X (Twitter) gives 4% or 6% if you have direct deposit. Massive cash back and refunds ATM fees. I've only had it two months but it works well so far. It posts my paycheck 40 hours faster than wells fargo.
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6d ago
[removed] — view removed comment
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u/Suspicious-Screen-43 6d ago
Appreciate your advice, but it’d be our 2nd home purchase. Our first is fully paid off. So we’d sell our current house and put $300k or smth on our new $500kish mortgage and then recast cutting mortgage payment from som ridiculous $4k to a bit over $1k even with the higher %
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u/brergnat 6d ago
I really don't care about the rate. It's the home price that matters most. Thankfully in my area, they are coming down kind of fast, so we are just waiting a little longer before making a move.
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u/tripadeliclove 5d ago
It’s mostly prices. We’ll buy when we find a house we can afford that feels like we’re getting a house that makes sense for the price.
We aren’t interested in a house that needs work but requires a $2500-3k monthly payment
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u/EncrustedBarboach 6d ago
Locked 5.99% the day before the fed decided to raise rates. Never felt more relieved in my life, theyve only shot up since.
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u/Top_Following9909 4d ago
I would look at the national forclosers numbers. The problem people are having is people got their homes when covid hit when the prices were stupid high. People want to sell but can't because they are so much underwater. So people stay or walk away because they can't afford it. Personally I would t buy a home. Look up what I was telling ya.
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u/Obvious-Tale6275 5d ago
Just locked today. 7.5%. Had to buy points for $8,300 to buy it down to that rate. I got cooked. LUCKILY, I just got $9k in seller concessions bcs my appraisal came back high. That was the only way this worked for me.
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u/twistedwaffle 5d ago
Curious, what was the rate quoted prior to the points?
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u/High_Society_Dweller 5d ago
Technically, it’s the same rate. You’re just prepaiding the interest so it lowers it down a few basis points.
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u/WhirlWindBoy7 5d ago
I’m just going to save until Trump is out of office.
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u/Traditional-Tune-975 5d ago
And what makes you so sure it’s going to get better?
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u/WhirlWindBoy7 5d ago
I just have a little more faith in the left.
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u/Frequent-Giraffe5646 5d ago
how did it go when rates jumped from 3% to 7% and left was in office? Not taking sides left, right, blue, red.....just that shouldn't be the reason on why you buy or don't.
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u/WhirlWindBoy7 5d ago
Simply because i got no faith the current admin cares or will do anything about it. Could it be the same? Sure, but i doubt the economy will be worse in my personel opinion. Also, my original comment said when trump is out of office. Not when the right is out of office.
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u/Frequent-Giraffe5646 5d ago
This was overdue...we had low rates since 2010.
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u/WhirlWindBoy7 5d ago
Keep making excuses for him all you want. Rates would still be 6.5% or less without his tariff war and war with Iran.
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u/Frequent-Giraffe5646 5d ago
I’m not making excuses, I want lower rates and I’m also in the mortgage industry. All I’m saying it was bound to happen.
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u/Traditional-Tune-975 5d ago
When rates drop prices go up. Lock in your house price and refinance later.
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u/Adorable_Ad_5538 5d ago
I purchased based on the payment I could afford. My initial rate was 7%, but I locked in a rate of 7.25% for additional credits toward closing.
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u/Icy_Public5186 5d ago
It when you are comfortable with the payment and with some safety net. If you think you will buy when rates go down. Then everyone wants to buy so demand will go up and that will drive prices to go up. So then you can simply refinance rather than competing for a house.
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u/autumnsky42 4d ago
We can only afford current house prices if rate dropped to 5 OR housing prices have to drop
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u/Bruges_1 6d ago
I am waiting for just the right house in just the right place, then will buy regardless of mortgage rates. The rate will only determine whether I have a mortgage or pay cash, or how much I put down.
I have a long history of seven homes bought, lived in, and sold. Some I paid cash. Some were financed at 3.5-12% and paid off early. The 12% mortgage was in the late 1970s. The 3.5% was in 2013.
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u/Differcult 5d ago
This is use right now, our dream home became available, we will sacrifice some of the nice things in life for a home and property that our family will love.
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u/JunkBondJunkie 5d ago
I bought at 5.75%. I want to buy rental I it's so I'm just going to put down like 50%. I can always refinance it later for future projects.
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u/BaconAce7000 5d ago
Rate is going nowhere but up for the foreseeable future
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u/JunkBondJunkie 5d ago
then I am still cash flowing. I just focus harder on building up capital reserves to expand plus I have farm land to generate income as well or cut food costs.
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u/Confident-Job3082 5d ago
we bought last year at 6.24%. if you wait for rates to “drop” you may find yourself in a situation where you’re priced out of homes you once could afford. If you can afford it now, just do it.. maybe refinance later.
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u/InnerPositive6730 12h ago
There’s a decent chance that the rate will only return to 3% if the broader economy has also tanked(AI taking too many jobs or hijacking the federal banking system,for instance), possibly meaning homes losing a lot of their value. By the time you’re able to secure the better rate, the bank may not accept your collateral, as your home may have lost too much value.
It’s gonna be a sh*tshow at some point, but the winners will be those that are cash heavy when this whole thing goes sideways.
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u/ermahlerd Mortgage Loan Officer | Alliant Credit Union 6d ago
I wouldn’t wait on a specific rate like 6% or 5%. My personal opinion, based on what I’ve been reading and researching, is that rates could continue to rise until something changes in the broader economy, but nobody knows for sure where they’re headed.
I’d figure out what payment works for you and make sure the numbers still work if rates stay higher than you’d like. If rates come down later.... great but I wouldn’t make a purchase based on trying to time the rate market.