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U.S. Mortgage Rates Jump to 5.62%, Highest Since 2009.
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2022 May 5, 12:32pm 311 views 7 comments
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1
joshuatrio
2022 May 5, 12:35pm
joshuatrio
2022 May 5, 12:35pm
While the data from that article is only a week old, the avg 30y is running 5.62%.
This is happening pretty fast.
This is happening pretty fast.
2
RWSGFY
2022 May 5, 2:01pm
RWSGFY
2022 May 5, 2:01pm
Sitting pretty with a 20 yr loan at 2.13% APR.
No, I'm not paying it off early.
NFW!
No, I'm not paying it off early.
NFW!
3
B.A.C.A.H.
2022 May 5, 2:33pm
B.A.C.A.H.
2022 May 5, 2:33pm
Al_Sharpton_for_President says
Al, are you here in the SF Bay Area?
®ealtors have been telling me for decades, "it's different here".
Tight inventory
Al, are you here in the SF Bay Area?
®ealtors have been telling me for decades, "it's different here".
4
Al_Sharpton_for_President
2022 May 5, 2:38pm
Al_Sharpton_for_President
2022 May 5, 2:38pm
B.A.C.A.H. says
No, Maryland, DC bedroom community, but looking to move. My current home is paid off, and so I am hedged against price movements, but ideally, the area in which we live keeps rising or not falling as fast as where we are looking to move to. :>)) Regarding the Bay Area, Seattle and the like, the segement of the home buying market comprising tech employees using stock option created money may take it on the chin as tech stocks continue to drop, and the options are out of the money. We'll see how this all plays out.
Al_Sharpton_for_President saysTight inventory
Al, are you here in the SF Bay Area?
®ealtors have been telling me for decades, "it's different here".
5
B.A.C.A.H.
2022 May 5, 2:53pm
B.A.C.A.H.
2022 May 5, 2:53pm
Al_Sharpton_for_President says
Widespread use/abuse of the H-1 visa program in recent decades coincided with the insane overpricing of homes here. (Like DC), it was always more expensive here than most other places. But when the tsunami of the H-1's arrived it became insane. Many of those are Rich Kids, whose parents (billionaires or whatever in Greater China and India) could buy them the Best Education Money Can Buy in their countries, then onward here to the US on student visas for the graduate education. Universities are complicit as they profit immensely from the high foreign student tuitions.
These folks covet the Left Coast. Tech employers with H-1's are ready to assist. Droves of them. Entire city blocks of condos here in places like the Golden Triangle of Silicon Valley look like suburbs of Mumbai (because they are!).
There's quite a lot of overlap between the H-1 headcount, and the stock option / RSU money you cite. H-1's get them also. Maybe petering out of the RSU money will impact the ability of those Rich Kids to buy homes here. We shall see!
Regarding the Bay Area, Seattle and the like, the segement of the home buying market comprising tech employees using stock option created money may take it on the chin as tech stocks continue to drop, and the options are out of the money. We'll see how this all plays out.
Widespread use/abuse of the H-1 visa program in recent decades coincided with the insane overpricing of homes here. (Like DC), it was always more expensive here than most other places. But when the tsunami of the H-1's arrived it became insane. Many of those are Rich Kids, whose parents (billionaires or whatever in Greater China and India) could buy them the Best Education Money Can Buy in their countries, then onward here to the US on student visas for the graduate education. Universities are complicit as they profit immensely from the high foreign student tuitions.
These folks covet the Left Coast. Tech employers with H-1's are ready to assist. Droves of them. Entire city blocks of condos here in places like the Golden Triangle of Silicon Valley look like suburbs of Mumbai (because they are!).
There's quite a lot of overlap between the H-1 headcount, and the stock option / RSU money you cite. H-1's get them also. Maybe petering out of the RSU money will impact the ability of those Rich Kids to buy homes here. We shall see!
7
EBGuy
2022 May 5, 7:15pm
Hmmm....
2 supersized Q1 deals pushed the Bay Area's seed, early stage funding tallies to record levels
Overall venture funding in the Bay Area tailed off in the first quarter from last year's record levels, but money going into more nascent companies actually surged.
Venture investors put less cash into local startups in the period than in any quarter last year, according to a report released Thursday by PitchBook Data and the National Venture Capital Association. Area companies also closed fewer deals than in any quarter in 2021, according to the report.
2 supersized Q1 deals pushed the Bay Area's seed, early stage funding tallies to record levels
Overall venture funding in the Bay Area tailed off in the first quarter from last year's record levels, but money going into more nascent companies actually surged.
Venture investors put less cash into local startups in the period than in any quarter last year, according to a report released Thursday by PitchBook Data and the National Venture Capital Association. Area companies also closed fewer deals than in any quarter in 2021, according to the report.
The average for a 30-year loan jumped to 5.27% from 5.10% last week, Freddie Mac said in a statement Thursday.
The Federal Reserve yesterday raised its benchmark rate by a half point, the biggest bump since 2000, and signaled further hikes to come in its effort to cool inflation and the overheated housing market. Higher mortgage costs -- already up more than 2 percentage points this year -- may increasingly push out would-be homebuyers and ease competition for a scarce supply of listings.
“While housing affordability and inflationary pressures pose challenges for potential buyers, house-price growth will continue but is expected to decelerate in the coming months,” Sam Khater, Freddie Mac’s chief economist, said in the statement.
Families typically spent 18.7% of their income on mortgage payments in the first quarter, up from 14.2% a year earlier, data from National Association of Realtors showed this week.
At the current 30-year average, a borrower with a $300,000 mortgage would pay $1,660 a month, $377 more than at the end of last year.
“With much higher monthly payments, buyers who don’t have savings for a large down payment risk being priced out of the market,” said Joel Berner, senior economic research analyst from Realtor.com. “Unfortunately, this is occurring just as nationwide rents reach an all-time high, making saving more difficult for those looking to buy their first home.”
Tight inventory is beginning to crimp purchases. But plenty of pent-up demand from the past couple of years and a rising share of cash buyers make a crash in home sales unlikely, according to Matthew Pointon, senior property economist at Capital Economics.
https://finance.yahoo.com/news/u-mortgage-rates-jump-5-140000410.html?source=patrick.net