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30 year fixed mortgage rates down after .75 hike from fed
Posted on 7/30/22 at 3:54 pm
Posted on 7/30/22 at 3:54 pm
Does the drop continue? I know that mortgages seem to follow the 10 year treasury note. The confidence in the economy tends to move the treasury note. I am close to closing on my forever home loan and have been very worried about how high mortgage rates would go since they started rising. The downward movement this week has been encouraging. Anyone thinks they continue to spiral downward?
3
Posted on 7/30/22 at 3:58 pm to shoelessjoe
I don't think they will drop too much. There will be more rate hikes upcoming.
Posted on 7/30/22 at 4:04 pm to tenderfoot tigah
Yes I understand there will be more rate hikes, but the recent rate hike didn’t affect it as I stated, 10 year treasury note is the sure tell sign. The note movement usually indicates consumer confidence in the economy. My point being, nobody is confident in the economy.
Posted on 7/30/22 at 4:34 pm to shoelessjoe
No one knows. Close when your house is done and refinance if there is some massive break to be had later. If you think by holding off you’re going to get a percentage point break on your home loan, you’re not.
Posted on 7/30/22 at 5:10 pm to CollegeFBRules
quote:
Close when your house is done and refinance if there is some massive break to be had later.
Agreed. Especially if it's really your forever home and you can afford the note at current rates. Eventually when the rates drop, refinance and the savings will feel nice.
Posted on 7/30/22 at 6:25 pm to shoelessjoe
quote:
I know that mortgages seem to follow the 10 year treasury note.
Sort of. They're really tied to the bond market (MBS). 10-year notes tend to lead mortgage rates when mortgage rates are going down. What we've seen recently though is the mortgage rate drop leading the 10-year note drop.
My guess is that more investors are starting to park more money in MBSs, expecting mortgage rates to go up, or at least some sort of new federal bailout if people just walk away like they did in 2008-09 (this is a bit out of my wheelhouse though).
quote:
I am close to closing on my forever home loan and have been very worried about how high mortgage rates would go since they started rising. The downward movement this week has been encouraging. Anyone thinks they continue to spiral downward?
The Fed has set a target of hitting 3%-4% with the FedFund rate by the end of the year (meaning at least another .5% in increases). Just like with stocks, you can only time the bottom perfectly by getting lucky. Rates my drop a little more, but with the Fed's target goal for the end of the year we aren't likely to see sub 4.5% for a looooooong time.
Go ahead and pull the trigger since this is your forever home. Don't let FOMO on a few percentage points make you miss your shot. Rates will eventually go down again due to some calamity, just refinance at that time (and if they don't, 5% is still a solid rate, historically).
This post was edited on 7/30/22 at 6:27 pm
Posted on 7/30/22 at 7:54 pm to Bard
I plan on locking in as soon as I can. Have to get closer to finishing before that happens. I’m about a month away from being able to lock in. Think I can lock in 2 months prior to finish.
Posted on 7/30/22 at 8:47 pm to shoelessjoe
Are you building? Why didn't you close up front?
Posted on 7/30/22 at 9:51 pm to shoelessjoe
quote:
have been very worried about how high mortgage rates would go since they started rising.
Mortgage rates are only temporary, once they fall just refinance.
Posted on 7/31/22 at 3:09 am to GrizzlyAlloy
quote:
Are you building? Why didn't you close up front?
Yes building. Couldn’t close up front. Have construction loan that is locked. Can’t close on mortgage until 2 months prior to being finished with build.
Posted on 7/31/22 at 5:48 am to shoelessjoe
We should be moving into ours in about 3 weeks. We did a one time close in March and locked in at 3.625
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