Post # 1
So FI and I are in the middle of a new construction build (likely to close anytime between the end of October and mid-November 2013), and we aren’t allowed to lock our rates until at least 90 days out from closing, which at the earliest would be several weeks from now. Is anyone else in a similar situation? Or looking to buy and freaking out about the current rates? I read that the Fed met today to talk about whether they’ll actually cease backing loans this year (like they said they would at their meeting a few weeks ago, which caused the rate spike), but I have no idea what that means for interest rates from here on out. I really hope they go back down, or at least stabilize! The market hasn’t seen a spike this crazy since 1987. Thoughts?
Post # 3
Can’t you get a rate hold? We had 120 days with our pre-approval.
Post # 4
@AB Bride: Unfortunately, our lender can’t do that for us; the best they can do is a 90 day rate hold. 120 days is great, though! I wish we had that option.
Post # 5
Can you apply with another lender?
We closed in November so are sitting pretty though I hope it doesn’t cause a real estate crash. Then we will be SOL!
Post # 6
There was a spike but I dont think its as bad as the 1980s lol. Our credit union can’t lock us in until we have a signed contract and its only good for 50 days (they estimate closing to take between 50 – 60 days). We got pre approved in early June for 3.125 and our current rate is 3.625 on a 15 year mortgage. I know our rates for 30 year jumped a little over 1 point too.
And just think if lending rates go up so do saving rates
Post # 7
Only if our on-going home purchase falls threw. (The home owner falked out on us this weekend….)
My parent’s first home had a mortage of around 13-15%, so if we do get screwed out of this house, I will just try to think of that. And hope we can still get a loan. This is what scares me more than the interest rate.
Post # 8
So freaked out that we are starting the process tomorrow even though we really wanted to wait until my husband got a job closer to the location we want.
Post # 9
@licoricetea3: exact same situation. We just closed today on new construction. When we first got our interest rate quote it was 3.625, but were unable to lock due to our builder not giving us a close date. So we locked 2 weeks ago at 4.625 and I freaked. It’s an extra $115 per month for us.
total. Freaking. Bummer.
Post # 10
Rates should actually be going back down – volatility in the geopolitical market (Syria) causes rates to get shaky, and rates always seem to go up on Friday afternoons (my mortgage broker says it’s because all the traders in NY rush to do their dumps before going to the Hamptons for the weekend).
@licoricetea3: Depending on where you are in Virginia, sequestration will also have a major effect on not only the rates, but the home prices in general. Since DOD just went into their furlough days with a 20% pay cut, it removes a lot of prospective buyers from the market, or may force some people to sell to stay above water. I’m in NOVA so sequestration as a whole has been a big wildcard during the homebuying process.
Post # 11
@MrsMaskatoBe: It really is a bummer! We can’t lock for a few more weeks, and I’m just praying that rates at least stay stable. It’s crazy that things can fluctuate this much so quickly — especially for those of us who began this process months ago, when rates were still crazy low. Congrats on closing, though!! Interest rates aside, y’all must be so excited!!
Post # 12
We are buying a new construction as well. We can’t lock in until the 23rd! I am freaking out because when we got preapproved it was @ 4% now its up to 5.25%! grrrrrrrrrr
Post # 13
@abbie017: Thanks for the info! I’m actually in NoVA, too, so it will be interesting to see what happens with sequestration. I definitely hope rates go back down!!