What are the current 30 year interest rates? +760 Credit SCore

I'm seeing a range from 5.5-7.13% but most of those borrowers are buying rates down with discount points. Our production is heavily concentrated in the DMV area and the sample size is small (as you can imagine ) so it might not be helpful.

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I'm seeing rates in the low 6% range and also mid to high 7% rates. With a +760 credit score (currently have a home), I was curious what some have been getting lately

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I am currently under contract at 5.75%

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I am currently under contract at 5.75%

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How long have you been locked? Rates have been trending up all month long after a few month decline.

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How long have you been locked? Rates have been trending up all month long after a few month decline.

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I locked in on 1/26 so yeah it has been a few weeks.

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Do you have any thoughts on the relative costs versus benefits lof the transactions in which the rates are bought down with an up front charge)?

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You can do the math yourself based on your future interest rate expectations. It would simply be the marginal interest costs per month x duration until rates drop + estimated costs to refinance.

Rate Buydown, Discount Points Overview

Lenders are desperate AF for volume right now. You should be snaking your loan officer like they would be to you in a sellers market. I'm not an LO so maybe somebody in sales could have a better answer for you. But based on macreconomic data, the global economy is in worse condition than when we were fully locked down during covid with the rest of the devloped/developing world. Rates aren't going to go up or stay at these levels for very long IMO.

My wife and I wouldn’t have been able to buy our house at current rates. Prayers for all you buyers out there.

Just locked in 5.99 on 1/25 with my builder's preferred lender. Should close next month

ETA: I try not to think about it but knowing a little over a year ago my rate would have reduced my mortgage by about $1000 per month hurts my soul

I ask because I wondered if my ignorance prevented me from understanding the advantage in some situations.

My bias is (given the buydowns are described as only a temporary decrease) that this is a typically terrible idea for a buyer. Because they are probably stretching to be able to make the monthly payments.

Once the temporary reduction is past I worry a lot of those buyers will get behind and eventually default.

Assuming a sellers mortgage means you assume their current balance and interest rate.

If the seller’s mortgage rate is less than what you can get, it’s a good thing to pursue. The “downside” of it is that you have to be able to fund the sellers equity in some other manner.

Example- say the seller refinanced their mortgage/initiated their mortgage at 3% a year ago or whenever. The house is currently selling for $400k, and the mortgage balance is $250k. You can take on their 3% mortgage or $250k. However, you have to somehow cover the other $150k. You can do that through a combination of down payment, cash, or another loan. If a loan, you probably won’t be able to finance that remaining $150k at the 3% rate. Most likely you’ll have to do it at the current market mortgage rate.

Given the general increase in housing prices, that means most people have to cover all the excess equity in some other manner. That is really hard for most first time home buyers…

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Once the temporary reduction is past I worry a lot of those buyers will get behind and eventually default.

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Lending standards are a good bit more stringent now than in 2008, so I am not as concerned about this. I think there will be a lot of refinance opportunities in the next 18-24 months, though.