Will mortgage rates drop?

amother

OP ↓

Sun, Aug 04 2024, 8:03 pm

What do you think?
My mortgage broker is convinced that they will drop down to 4.5 or something within the year
Obviously it's what he thinks no one knows forsure

amother

Crystal ↓

Mon, Aug 05 2024, 7:28 am

amother OP wrote:

What do you think?
My mortgage broker is convinced that they will drop down to 4.5 or something within the year
Obviously it's what he thinks no one knows forsure

There's no way to know but I will say that mortgage brokers have said the same thing last year and it didn't happen.

If the only way you could afford a house is if mortgage rates drop within the year and if not you will lose it, go into debt, etc, please do not buy the house now.

amother

Ruby

Mon, Aug 05 2024, 7:39 am

Mortgage rates have dropped from 7.5 to 6.5 in the past few weeks. Houses are still overpriced. If there is a recession it’s possible that rates go back down to 4 but that means less people able to afford homes.

amother

Hunter

Mon, Aug 05 2024, 7:41 am

If the rates go down prices and demand will go up.

We bought with a high rate but we are able to pay the mortgage (it’s uncomfortable! But we can do it). Do not recommend if you can’t .

amother

↑ OP

Mon, Aug 05 2024, 9:04 am

amother Crystal wrote:

Funny how people go on rants without it being the question?!

amother

Raspberry

Mon, Aug 05 2024, 9:15 am

It might stay at a high rate the new normal.
just like groceries aren’t going down.

The Covid rates are very rare…

Realtors need to sell houses so they talk and lie, unfortunately it’s a lying business
if you can’t afford don’t buy… not not worth it

Genius ↓

Mon, Aug 05 2024, 9:17 am

4.5 is wishful thinking. Not saying it won’t happen, but the chances are small.
The more realistic hopefuls claim the first number will be a 5 by the end of 2024. I guess 5.9 is better than 7.7.

amother

↑ Crystal

Mon, Aug 05 2024, 9:18 am

amother OP wrote:

Funny how people go on rants without it being the question?!

I'm not sure how you read that as a rant? I was answering your question by telling you that Brokers have been saying that for over a year and nothing's really changed so I wouldn't trust what he says because obviously they don't know what they're talking about...

And yes, if somebody is thinking to buy a house based on what the mortgage broker is saying, they should know that he's extremely biased and he has no way of predicting the future.

↑ Genius

Mon, Aug 05 2024, 9:19 am

amother Raspberry wrote:

That’s not how interest rates work. They’re moved up and down to control the economy. Although the record low rates during covid were not the norm, so don’t expect that again in our lifetime.

amother

Acacia

Mon, Aug 05 2024, 10:27 am

Mortgage rates are tied to the economy which are tied to politics.
We are in an election year. They may drop slightly before the elections but really the outcome of the elections will be more telling of whether or not rates will drop.
In 2020 rates were pretty low. I refinanced for under 3%. A few months later they started climbing very drastically very fast.
If you can wait for elections I think you only have what to gain. I doubt they'll go back up too much but they may go down

amother

Kiwi

Mon, Aug 05 2024, 1:05 pm

I'm between contract signing and closing be"h, my broker just called me that because of the stock market crash, they got notification to lock all loans because the rates will almost indefinitely go up.
Doesn't a market crash usually make the rates go down?
am I doing the right thing??

amother

Nasturtium

Mon, Aug 05 2024, 1:08 pm

amother Hunter wrote:

If the rates go down prices and demand will go up.

We bought with a high rate but we are able to pay the mortgage (it’s uncomfortable! But we can do it). Do not recommend if you can’t .

I can’t afford to buy a house now and am hoping that prices won’t go up too much when the rates go down. The problem now is that there are way too few houses on the market so prices are staying high. People don’t want to sell their homes now because they’d have to buy a new house with the crazy new rate. If the rates go down, the market will be flooded with people who’ve been waiting to sell and hopefully prices will stay the same or go down.

amother

Babypink

Tue, Aug 06 2024, 1:08 pm

Genius wrote:

4.5 is wishful thinking. Not saying it won’t happen, but the chances are small.
The more realistic hopefuls claim the first number will be a 5 by the end of 2024. I guess 5.9 is better than 7.7.

The first number is already a 5.

I have offers for 6.0 not points down for standard 30 yr loan and 5.75 with points.

Fha is even lower.

This is with a few different lenders I checked and it's been this way since last week

amother

Seafoam

Tue, Aug 06 2024, 1:10 pm

amother Glitter wrote:

I really hope so! I’m waiting to buy for a while because of this.

Don't wait because as soon as mortgage rates drop, housing prices will fly up faster than you can blink.