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7%. Again.
US mortgage rates: They're high. Or "high," with scare quotes.
It depends on how old you are. If you meet some definition of young, loose or otherwise, rates probably seem high, bordering on punitive. If you're Methuselah, and you were home shopping in the early 1980s, current financing costs probably seem fair -- generous, even.
Whatever the case, MBA data released on Thursday showed the average conforming 30-year fixed rate rose within a whisker of 7% last week. At 6.97%, rates are now the h
My first mortgage was indeed more than 40 years ago with said 11+ rate, and lost that home to the Houston oil price drop / housing crunch in 86; we managed to get our PMI company to accept a 40% haircut on what we owed, just because we had a willing buyer (alt was bankruptcy/foreclosure)… none of our friends in the same boat were so lucky. Now more frugal, own forever home outright (and not in Houston). 7% ain’t so bad, really. And refinancing someday will feel good.
I see estimates that mortgage rates could rise from 25-100bp, potentially more for borrowers with poorer credit, if Fannie and Freddie are removed from conservatorship. No sense how realistic that is, presumably depends on how it is done and if the implicit guarantee remains.
H-Man, homes are expensive creatures —they demand to be fed all the time, deny them a meal and it falls on you.