Re:Mortgage Rate jump up, slowing down the buyer market
by scarface74 on Thursday April 20, 2023 @04:34PM
(#35645891)
How is this good news for buyers? People who own homes are reticent to sell in this environment.
Anecdote: I had my house built in 2016 for 340K with a 3.5% 30 year FHA loan with PMI. I refinanced when it was worth $650K in 2020 with a 15 year mortgage and 1.9% and dropped PMI. I am paying roughly $300 more per month.
Why would I sell my house knowing that I’m going to have to pay triple the interest rate? There are plenty of home owners who are thinking the same way.
My wife and I decided to move. Instead of selling our old house, we decided to rent our house and buy our second home because we were paying basically nothing in interest.
Anecdote: I had my house built in 2016 for 340K with a 3.5% 30 year FHA loan with PMI. I refinanced when it was worth $650K in 2020 with a 15 year mortgage and 1.9% and dropped PMI. I am paying roughly $300 more per month.
Why would I sell my house knowing that I’m going to have to pay triple the interest rate? There are plenty of home owners who are thinking the same way.
Even going a step further,
https://www.chicagobusiness.com/residential-real-estate/peop...
My wife and I decided to move. Instead of selling our old house, we decided to rent our house and buy our second home because we were paying basically nothing in interest.