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Author Topic: How Rates and Monthly Payments Stack Up Against Half a Year Ago  (Read 1283 times)

Offline pianoman9701

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How Rates and Monthly Payments Stack Up Against Half a Year Ago
« on: November 21, 2022, 03:57:20 PM »
A year ago, people were over-bidding well above asking price. When rates took an upward turn this past January, that all slowed and finally, stopped. Now into a buyer's market, things have turned around and it may be time again to consider the home purchase you've been waiting on. In addition, sellers are giving concessions to help move their properties, paying for closing costs, rate buydowns for up to 3 years, etc. I hope this chart helps lay out what I'm saying. Give me a call for more information.
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Offline fly-by

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Re: How Rates and Monthly Payments Stack Up Against Half a Year Ago
« Reply #1 on: November 21, 2022, 04:42:10 PM »
This analysis implies that the same house is off by 15% (500k down to 425k).  The market is soft, but not that soft.

I would instead look at it this way:  If you accept a high rate today, you'll likely get a chance to refi at some point. The cost of a couple of years at 2.00 difference vs 6 months ago is not that large.  However, if you overpay for the house, you simply overpaid and need to stick around for 30 years to realize the benefit of the low rate.  Few people do that. 
« Last Edit: November 21, 2022, 04:49:58 PM by fly-by »

Offline Buzz2401

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Re: How Rates and Monthly Payments Stack Up Against Half a Year Ago
« Reply #2 on: November 21, 2022, 04:59:55 PM »
Except a year ago they were below 4% and today they are above 6.5%.  Wait a year and that $425k house will sell for closer to $350k.  This is going to get bad, people are used to using their houses as cash machines.  Now that they won't be able to afford to do that people will start filing for bankruptcy only making the situation worse. 

Offline pianoman9701

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Re: How Rates and Monthly Payments Stack Up Against Half a Year Ago
« Reply #3 on: November 22, 2022, 08:30:10 AM »
This analysis implies that the same house is off by 15% (500k down to 425k).  The market is soft, but not that soft.

I would instead look at it this way:  If you accept a high rate today, you'll likely get a chance to refi at some point. The cost of a couple of years at 2.00 difference vs 6 months ago is not that large.  However, if you overpay for the house, you simply overpaid and need to stick around for 30 years to realize the benefit of the low rate.  Few people do that.

According to Zillow, mine is down 10%. Zillow is almost always high.
"Restricting the rights of law-abiding citizens based on the actions of criminals and madmen will have no positive effect on the future acts of criminals and madmen. It will only serve to reduce individual rights and the very security of our republic." - Pianoman

 


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