Should You Rent or Buy?
Whatâs better, renting or buying? If you look at pure numbers, it appears that over the past 5 or 6 years, renters have seen their costs go up while homeownersâ […]
The post Blog first appeared on MilitaryVALoan.com.
Whatâs better, renting or buying? If you look at pure numbers, it appears that over the past 5 or 6 years, renters have seen their costs go up while homeownersâ […]
The post Blog first appeared on MilitaryVALoan.com.
While mortgage rates have a good chance of getting worse before they get better, hope might be on the horizon. The long and the short of it is that mortgage rates go up as inflation goes up, which explains some of the recent increase. The other driver was the end of the Fedâs mortgage-backed securities… Read More »The Case for Sub-5% Mortgage Rates by 2023
The post The Case for Sub-5% Mortgage Rates by 2023 appeared first on The Truth About Mortgage.
Lately, Iâve been seeing the old âmarry the house, date the rateâ adage thrown around a lot. The idea is relatively straightforward. You buy a home you really want, regardless of available financing terms. And the mortgage rate you receive, even if high today, isnât your forever rate because you can always refinance down the… Read More »Marry the House, Date the Rate. What?
The post Marry the House, Date the Rate. What? appeared first on The Truth About Mortgage.
We ended 2022 on a solid note as 4.5 million jobs were created â and we still have more than 10 million job openings.
Interest rates on home mortgages are rising rapidly across the United States, which seems to be slowing most housing markets. (Some, like the market here in Corvallis, have been less affected. Give it time.)
The average mortgage rate for a 30-year loan was about 3.0% at the start of the year; today, it’s at 6.245% â even for somebody with an excellent credit score over 800.
Kim and I are fortunate that we bought our home in 2021 instead of waiting until 2022. Mortgage rates weren’t actually a factor during our deliberations last year; the historically low rates were simply an added bonus for buying when we did.
When we purchased our home last August, we took out a $480,000 mortgage at 2.625%. We didn’t hit the precise bottom of the mortgage market (that was early January 2021, when we might have had a loan for 2.5%), but we came close.
Here’s a chart from the Federal Reserve that shows mortgage rates from the past 2.5 years.
And here’s a chart that shows mortgage rates for the past 50+ years:
Mortgage rates have hovered at historic lows since the Great Recession of 2007-2009. And rates fell even further during the COVID pandemic. (These low rates are partly responsible for the blazing-hot housing market of the past two years.)
What do these rising mortgage rates mean to actual home buyers? Let’s use our situation as a representative example.
Interest rates on home mortgages are rising rapidly across the United States, which seems to be slowing most housing markets. (Some, like the market here in Corvallis, have been less affected. Give it time.)
The average mortgage rate for a 30-year loan was about 3.0% at the start of the year; today, it’s at 6.245% â even for somebody with an excellent credit score over 800.
Kim and I are fortunate that we bought our home in 2021 instead of waiting until 2022. Mortgage rates weren’t actually a factor during our deliberations last year; the historically low rates were simply an added bonus for buying when we did.
When we purchased our home last August, we took out a $480,000 mortgage at 2.625%. We didn’t hit the precise bottom of the mortgage market (that was early January 2021, when we might have had a loan for 2.5%), but we came close.
Here’s a chart from the Federal Reserve that shows mortgage rates from the past 2.5 years.
And here’s a chart that shows mortgage rates for the past 50+ years:
Mortgage rates have hovered at historic lows since the Great Recession of 2007-2009. And rates fell even further during the COVID pandemic. (These low rates are partly responsible for the blazing-hot housing market of the past two years.)
What do these rising mortgage rates mean to actual home buyers? Let’s use our situation as a representative example.