Author Topic: Are sub-4% interest rates gone?  (Read 1676 times)

El_Viajero

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Are sub-4% interest rates gone?
« on: November 07, 2015, 10:17:42 AM »
So we made an offer on a home last spring and it wasn't accepted. Just the other day, we made an offer on another one and we're now under contract. Hooray!

Anyway, rates were still lower than 4% last spring when we were looking, but everything I'm seeing now is 4.1%+ APR.

I'm a first-time buyer with great credit, and I'm putting down 20%. The place is technically a condo (although it looks and feels like a townhouse, for what that's worth). Does anyone know something about this that I don't? Is 4%+ the new norm now?

I realize 4% is still historically low, so that's something.

El_Viajero

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Re: Are sub-4% interest rates gone?
« Reply #1 on: November 07, 2015, 11:26:08 AM »
Ok, I'm replying to myself. I know. I know.

It looks like 4% is, indeed, the norm these days: http://www.bankrate.com/finance/mortgages/current-interest-rates.aspx

I guess there's not much more to ask. 'Tis what it is, and I'll have to shop for the best rate.

I apologize for clogging up the forum with a question that has an obvious answer.

sol

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Re: Are sub-4% interest rates gone?
« Reply #2 on: November 07, 2015, 11:33:03 AM »
I think the question still has value.  Just because today's rates are over 4 percent doesn't necessarily make that the new norm. 

Who thinks mortgage rates will drop to under 4% on a US 30 year fixed in the next year?

Personally I'm hoping they don't, because I've already bought all the properties I want and I feel that higher rates will correlate with higher inflation and higher market returns (both nominally good things right now).

boarder42

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Re: Are sub-4% interest rates gone?
« Reply #3 on: November 07, 2015, 11:39:18 AM »
rates are always fluctuating.  could be 4% today and 4.25 next week or 3.75 you just never know what exactly they will do day to day week to week.

Bearded Man

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Re: Are sub-4% interest rates gone?
« Reply #4 on: November 07, 2015, 04:10:24 PM »
You can buy down the rate, and deduct it on your taxes. I'm not seeing sub 4% anymore either. With the higher prices and the rising rates, it's tough to find deals in big city areas.

I will say I am amazed how much rents have risen in the past few years. My first rental of three years, has gone up $275 in about 2.5 years. I still charge below market, no vacancy issues, always filled.

Same thing with another rental. In the 1.2 years it's been a rental, rent has gone up $200. I still charge below market rent there as well, though will be raising it next year IF I don't move back into it.

If they keep rising like this along with prices, I may very well refinance to draw some cash out and pool for another market crash or some assets elsewhere.