Rates are up! Does it matter?

By
Mortgage and Lending with Christensen Financial Mortgage 385907

Rates are up!!! Is the proper response, oh no! or who cares?

Are rates having any effect, whatsoever, over purchases, or is just really nice to have a low payment?

I lived through 18, 19, 20% rates and we still had some sales, and we were very thankful, when the rates began going down. At that time we never believed rates would/could go back to single digits.

In my opinion, for what it's worth, the only thing that matters about the upturn in rates is

that they were lower 2 weeks ago!

shoulda locked, dam!

Here's some boring data for your consumption.

On a $100,000 mortgage the difference in payments between a rate of 4.25% and 4.5% is about $15 a month.

This can't be a deciding factor to purchase, or not to purchase, can it?

Okay, on the same mortgage the difference between 4.25% and 4.75% (a ha) is about $30 a month.

Told ya the data was kinda boring.  

Is the increase really just a buy now rates are going up thing? To a certain degree

Yes

So, does it really matter?

To a certain degree yes, but possibly not really. I've got to tell you having been in the mortgage business for over 30 years it's really difficult to sound the alarm about rate increase when they're still under 5%. It's kinda a big

Yawn

Nevertheless, rates have been increasing

get em while they're HOT!

Comments (2)

Brian Geraghty
David Wain Realty, LLC - Fort Lauderdale, FL
Short Sale Expert, 954-790-2602

Jay,

So a point increase is about $60 more per month per $100,000?

Just wanted to add more excitement to your post - :)

All kidding aside, there is a tipping point but I do remember those horrible rates in the 80's and people were still buying but I also remember housing prices were also increasing for a while as well. Guess we're on the other side of the pendulum swing for sure.

Best regards,

Brian Geraghty, Broker
David Wain Realty,LLC
Fort Lauderdale, FL 

Dec 14, 2010 01:55 AM
Jay Beckingham
Christensen Financial Mortgage - Port St Lucie, FL
Seniors ROCK!

Brian,

it's one of those things where we need to let people know we're experiencing increases, but it's hard to get too excited about it, because rates are still grrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrreat!

thanks

jay

Dec 14, 2010 02:36 AM