Homebuyers scramble as mortgage rates jump

Breitbart (AP) ^ | April 7, 2010 | Alan Zibel and Adrian Sainz

[Cheap_Hessian]

WASHINGTON (AP) - The era of record-low mortgage rates is over.

The average rate on a 30-year loan has jumped from about 5 percent to more than 5.3 percent in just the past week. As mortgages get more expensive, more would-be homeowners are priced out of the market—a threat to the fragile recovery in the housing market.

And if you wanted to refinance at a super-low rate, you may have missed your chance. Mortgages under 4 percent are still available, but only for loans that reset in five or seven years, probably to higher rates.

Rates are going up because of the improving economy and the end of a government push to make mortgages cheaper.

[Notary Sojac]

Actually, you should always buy when mortgages are high.

[b4its2late]

Rates are going up because of the improving economy and the end of a government push to make mortgages cheaper.

I really don't think that is the reason.

[HereInTheHeartland]

“The era of record-low mortgage rates is over. “

5.125% for a 30 year fixed and someone makes the above statement?
Do they have any clue what the average range is for mortgage rates?
It sure isn't the low 5’s.

[Angry_White_Man_Syndrome]

More likely, they are going up, because capital is drying up at level of only 5% return.

[Need4Truth]

Good economic news is the first reason rates are rising: U.S. government debt, a safe haven during the recession, is losing its appeal as investors turn to stocks and riskier corporate bonds.

Also, the huge treasury auctions needed to fund Obama's deficit could have something to do with the higher rates.

[throwback]

And nothing to do with the all consuming black hole of the federal debt sucking all credit known to man into it soon? Ok. Whatever.

[AngelesCrestHighway]

The improving economy?.....

Is anyone out there buying this crap?

[RatRipper]

“Rates are going up because of the improving economy and the end of a government push to make mortgages cheaper.”

. . . and because Congress and Zer0 are spending money like drunken sailors, borrowing the money to do it, and bidding up the cost of money they MUST have by competing with individuals for funding in the markets to get their next fix.

That is certainly going to do a lot for unemployment in the long run. Every time the economy will get some momentum, it will get hammered back down by the cost of money.

[nagdt]

I wish my rate was 5.1%! That’s very low. I was lucky and locked in @ 6.25 a few years ago. I’d refinance...but that will cost me up front.

I suppose if you put 75% down you can get a 5% rate...
LOL.

[Cheap_Hessian]

"Is anyone out there buying this crap?

I would hope not.

[N3WBI3]

Yup, The property value will be suppress and you can always refinance when rates drop..

[Theophilus]

"Rates are going up because of the improving economy and the end of a government push to make mortgages cheaper."

I really don't think that is the reason.

Amen. What private investor in his right mind would loan money to an idiot buying a house in this overpriced market? Hopefully people will learn that you don't buy a house because rates are low, you buy a house because the price is right.

[Cheap_Hessian]

Well, the Fed stopped buying mortgage-backed securities recently.

[iceskater]

I got 4 and 7/8ths back in October. 30 year fixed. I’m pretty happy. I don’t plan on moving any time soon.

[familyop]

As bonds collapse, interest rates will go a lot higher. And most of those who buy in the meantime for presently lower rates will be left with steeply declining real estate market prices.

[familyop]

"I really don't think that is the reason."

You're right. The real reason is the competition between government and consumers for debt. It will skyrocket soon. Both bond prices and real estate prices will take another plunge before long--maybe a real good one.

[mvpel]

I have a 5.875% 30-year-fixed. I tried to refi to 4.875%, but wound up with about $13,000 in closing costs that scuttled the deal.

[Alberta's Child]

Right. I think most banks tie their mortgage interest rates to 10-year Treasury notes, so as U.S. government rates rise those mortgage rates will, too.

[Scarpetta]

I got a letter from my mortgage company today offering me a 4.125 fixed rate / 10 year refi that shaves 3 years off my current mortgage and saves me $17,000 in interest over the life of the new loan.

My current rate is 5.625 and I have 13 years left on it. The new deal works out to about $100 more a month in principal and interest.

Is this a good deal?