CFAH

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With the Federal debt impasse having yet to be resolved, the average rate for a conforming 30-year mortgage ticked up to 4.23 percent last week, a nominal 1 basis point above last week’s three month low of 4.22 percent and 35 basis points below the two-year high of 4.58 percent recorded in August.
The average 30-year fixed mortgage rate was 3.39 percent at this time last year having averaged 6.75 percent since 1990.
Fixed Mortgage Rates Little Changed [Freddie Mac]
Spike In Sales Due To, Rather Than Despite, A Spike In Rates [SocketSite]

Comments from Plugged-In Readers

  1. Posted by unwarrantedinlaw

    I remember the 18% mortgage. When rates got down to 7%, I couldn’t believe the gods could be so generous. I think these 3% – 4% mortgages we’ve become accustomed to are astonishing, and that it’s a good idea to make sure you’ve loaded up on as much of it as you can get, because we will never see such low rates again.

  2. Posted by Jimmy the House Flipper

    Funny thing is I try and get higher rate 30-year fixed mortgages so I can collect the yield-spread premium back on my flips. I would happily take a 30-year fixed at 10%, collect 100 grand in YSP and then sell the place 6 months later. Banks are not quite that stupid which is unfortunate.

  3. Posted by unwarrantedinlaw

    My goodness, I had never heard of YSP. My loans have been directly with banks so it’s not been disclosed.

  4. Posted by Hawkeye

    @Jimmy – Uhhh… Isn’t having the mortgage broker kicking back the YSP to you defrauding the bank?

  5. Posted by lyqwyd

    It’s not fraud, it’s the opposite of buying down ones loan. Instead of paying up front for a lower interest rate, you pay less closing costs for a higher rate. I don’t know if banks will actually give you cash back if you go to a high enough rate.

  6. Posted by Jimmy (No Longer Bitter)

    You can’t go high enough to get cash back. They’re wise to that one …

  7. Posted by Happy in SF

    Is there any way to “refinance” just a HELOC? Mine is $50k at 7.125% (ouch! I was in a pinch for quick cash two years ago). My $435k mortgage is a 4% fixed 30-yr. Condo value is around $750k based on recent building sales. I want to keep my 4% fixed 30-yr, but the HELOC is scary with rates set to move (besides, 7.125% is way high already).

  8. Posted by Jimmy (No Longer Bitter)

    Why not just pay off the HELOC. Its only $50k.

  9. Posted by 49yo hipster

    Happy in SF- you can refi the HELOC into a fixed rate 2nd loan. Probably lower than 7%, but I think over 5%. Or just refi it into a new HELOC, If you plan to pay it off in the next few years. You can get a new HELOC for way under 7% today, no problem.

  10. Posted by NoeValleyJim

    Yeah, I just recently took out a fixed 4.5% second to finance the second home purchase and remodel. Pentagon Federal Credit Union was great.
    I also like Patelco Credit Union and have been a customer with them forever. The only reason I did not go with them for the second is that they have a $200k loan limit, but that shouldn’t be a problem for you.

Comments are closed.

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