In reply to drainoil:
They're supposedly heading that way now, but only time will tell.
In reply to drainoil:
They're supposedly heading that way now, but only time will tell.
petegossett wrote: In reply to drainoil: They're supposedly heading that way now, but only time will tell.
It's been that way for at least two solid years, maybe longer. I can't see any raise in rates being large. I would bet initial bump will be small just to test the waters.
Don't forget that inflation expectations are also playing into mortgage rates and one of the expectations of the Fed rate rise is that it's done to combat inflation.
TBH, unless you buy just before a rate hike I don't see the rate hike as being that big an issue. It's not like mortgage rates would suddenly double (which would only bring them back in line with long-term average rates anyway) and there is a proven inverse correlation between house prices and mortgage rates.
BoxheadTim wrote: Don't forget that inflation expectations are also playing into mortgage rates and one of the expectations of the Fed rate rise is that it's done to combat inflation. TBH, unless you buy just before a rate hike I don't see the rate hike as being that big an issue. It's not like mortgage rates would suddenly double (which would only bring them back in line with long-term average rates anyway) and there is a proven inverse correlation between house prices and mortgage rates.
Exactly, if anything it may help with the home buying process because demand should slow down and you may get a better deal on a house.
+1 on the inflation gig too. Can't wait for year 30 of my mortgage when I'm paying peanuts on my house.
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