I refinanced an investment property in Texas in December and got a rate of 3.37%. I just bought a single family home (closing at the end of this month) and the interest rate now was 5.0%. In just six months the increase in rates has been tremendous. To the homebuyer that can mean hundreds of thousands of dollars less in purchasing power. Definitely feels like home prices will have to come down.
An alternative view from Chartr (solid newsletter highly recommend) regarding mortgage rates....I personally was taken back by the x-axis here...depending on your own experience, your definition of 'normal' rates is likely verrry different from another homebuyer from another year/decade
Yea but most loans are fixed and most were refinanced under 4% over the last 2 years. This really doesn't apply to anyone besides new owners and those with ARMs